Most investors enter Montreal's revenue-property market by buying — a plex, then something bigger. There is a second path that gets far less attention and, in the right circumstances, produces better returns: building a small multiplex using modular construction. In 2026, with land available in transitioning corridors and CMHC financing rewarding new affordable units, the math deserves a serious look.
The Core Idea
You acquire a well-zoned lot, design a 4- to 8-unit building, fabricate it in a factory, and set it on a permanent foundation in a fraction of the time traditional construction would take. The finished building is a normal revenue property — appraised, financed, and operated like any other. The advantage is entirely in the cost and speed of creation versus paying retail for existing stock.
Why Speed Is the Whole Argument
When you buy an existing building, you pay today's market price set by the income approach — there is no discount for your effort. When you build, you capture the spread between construction cost and finished value, and modular compresses the riskiest, most expensive variable: time.
Every month a project sits unbuilt is a month of land carrying cost, loan interest, and forgone rent. Modular fabrication running in parallel with site work can shave several months off the schedule versus stick-built. On a multi-unit project, those months translate directly into reduced carrying cost and earlier rental income — the difference between a marginal project and a strong one. The full timeline mechanics are in the modular homes guide.
The Financing Stack
This is where modular multiplex projects become genuinely compelling. Because the finished building is conventional real property, it qualifies for CMHC MLI Select on the completed asset. New construction is also a natural fit for MLI Select's affordability and energy-efficiency points — you are building to spec, so you can design the unit mix and envelope to score.
The sequence typically runs: construction draw mortgage during the build, then a take-out CMHC-insured mortgage on completion at high leverage and long amortization. Structured well, the permanent financing can return much of the equity deployed during construction.
What Has to Line Up
- Zoning. The lot must permit your unit count and form as-of-right, or you accept rezoning risk. Start with the zoning and development charges primer.
- Site access. Modules arrive by truck and crane — the site must accommodate delivery.
- Inclusionary obligations. Larger residential projects in Montreal carry social/affordable contributions; model these from day one.
- A builder with an RBQ licence and a real modular track record.
Where It Beats Buying
The build path wins when: land is reasonably priced relative to finished value, the lot is buildable as-of-right, and you can design for CMHC points. It loses when: land is priced as though already developed, the approval path is uncertain, or the site fights modular delivery. The discipline is identical to any acquisition — run the all-in numbers against the realistic finished value before committing.
This is exactly the analysis I run with clients weighing build-versus-buy. If you own a lot, or are hunting one, the multifamily practice prices both scenarios — and the sell-side process values the finished building from the other direction.
Jeremy Soares is an OACIQ-licensed residential and commercial real estate broker (H2731) in Montreal.