How much could we
offer for your property?
Enter your income property's figures and get an estimate of our purchase offer in seconds — based on normalized net operating income and a market multiplier.
ImmoMulti is a direct buyer of plexes and multi-unit income properties on the North Shore of Quebec. The offer is calculated from the property's normalized net operating income (NOI), capitalized at the market rate, less the down payment and adjustments. The process is free, confidential and broker-free: you receive a priced offer within 48 hours, with no commission and no obligation.
- Direct buyer, zero commission
- Firm offer within 48 h
- Free and no obligation
How a direct buyer calculates an offer for an income property
An income property doesn't sell "by the square foot" or at the neighbour's price: it sells based on what it earns. A direct buyer like ImmoMulti starts from the income the building actually generates, normalizes it, then converts it into a price using a capitalization rate. Here, step by step, is the exact logic behind the estimate this calculator produces — and what pushes the final offer up or down.
The income approach: why the numbers decide
For a duplex, a triplex or a building with 6, 12 or 40 units, value rests on a simple idea: a property is worth the net income it produces, multiplied by what the market is willing to pay for that income. Appearance, neighbourhood and gut feeling play a role in the background, but the numerical starting point is always the same. That's exactly what a direct buyer does: it rebuilds the normalized income, applies a capitalization rate specific to the area, then adjusts for the building's condition and the realities of financing.
The process unfolds in four stages: (1) establish the normalized net operating income (NOI), (2) capitalize it into a value with a capitalization rate (cap rate), (3) check what the financing actually allows you to pay, and (4) adjust for the risks specific to the file. Our offer calculator automates the first three; the fourth is confirmed during the file review.
Normalized net operating income (NOI), the heart of the calculation
The normalized NOI is the income the building generates once all operating expenses are removed, but before debt service and income tax. We call it "normalized" because we don't blindly trust the seller's figures: we replace optimized or missing expenses with standard, prudent assumptions. The formula:
Normalized NOI = Effective gross income − Vacancy − Normalized expenses
where effective gross income = rents + other income (parking, laundry, storage) − a provision for vacancy and bad debt (often 3 to 5%).
On the expense side, we normalize each line item to reflect the building's true performance, regardless of how it is currently managed:
- Municipal and school taxes — the actual amounts from the tax bill, usually the single largest line item.
- Insurance — the actual premium, often sharply higher in recent years.
- Energy — electricity and heating of common areas (and of the units if the landlord pays for them).
- Maintenance and repairs — a realistic provision, not just last year's invoices.
- Management — a percentage of revenue (often ~5%), even if the owner self-manages: their time has value.
- Caretaking and miscellaneous costs — snow removal, lawn care, waste, bank charges, accounting.
- Replacement reserve — an annual provision for the roof, windows, plumbing and systems nearing the end of their life.
Normalizing lets you compare two properties on a fair basis and avoids overpaying for a building whose expenses are temporarily low. That's why a seller whose "expenses" look abnormally low will see their building revalued downward once the figures are normalized. To frame the income side fairly, accurate market rents matter — and a building with rents close to market starts from a stronger NOI.
Capitalization: from NOI to value
Once the NOI is established, it is converted into value. Direct capitalization links three variables:
Value ≈ Normalized NOI ÷ cap rate (capitalization rate)
Conversely: cap rate = NOI ÷ Price. A higher cap rate = a lower price for the same income (the buyer demands more yield).
Take a simple, consistent worked example. A 6-unit building shows gross revenue of $84,000/year. After 5% vacancy (−$4,200) and normalized expenses of $32,000, the normalized net operating income works out to:
| Item | Amount |
|---|---|
| Gross revenue | $84,000 |
| Less: vacancy (5%) | −$4,200 |
| Effective gross income | $79,800 |
| Less: normalized expenses | −$32,000 |
| Normalized NOI | $47,800 |
At a cap rate of 5.5%, the capitalized value is $47,800 ÷ 0.055 ≈ $869,000. At a cap rate of 6.5% (a more demanding market or a riskier building), the same property is worth only $47,800 ÷ 0.065 ≈ $735,000. A single point of cap rate thus shifts value by more than $130,000 — which is why pinning it down matters. To go deeper, see our cap rate calculator.
The same reality is often expressed with a multiplier rather than a rate. The net income multiplier (NIM) is the inverse of the cap rate: value = NOI × NIM. In the example, a 5.5% cap rate is equivalent to a NIM of roughly 18×. The gross rent multiplier (GRM), for its part, applies to gross revenue and serves as a quick benchmark. We break it down in our GRM calculator.
The impact of financing: CMHC / MLI Select vs conventional
The NOI and cap rate give a "theoretical" value. But the offer a buyer can actually submit also depends on what the financing allows. Three levers come into play:
- The loan-to-value ratio (LTV) — a conventional loan often caps at 75% of value (25% down payment), while CMHC-insured financing can reach 85%, and the MLI Select program up to 90–95% for affordable buildings. The higher the LTV, the less capital the buyer ties up — which can support a more generous price.
- The insurance premium — a CMHC/MLI Select insured loan involves a premium (often ~4% of the loan), usually financed. It increases the debt but unlocks leverage and better rates.
- The debt coverage ratio (DCR / DSCR) — the lender requires the NOI to cover debt service with a margin: a minimum DCR of 1.20 conventionally, sometimes 1.10 when insured. If net income isn't enough, the bank reduces the loan, regardless of the capitalized value.
In practice, it's often the DCR — not the LTV — that caps the financeable amount. A building whose rents are below market generates an NOI too thin to support a large loan: the buyer must then put more down, which weighs on the price they can offer. CMHC's MLI Select framework (amortization up to 50 years, relaxed DCR) can instead increase borrowing capacity and therefore the offer, provided the building meets the affordability criteria. Our calculator factors in these three programs to estimate the actual down payment required.
What raises the offer — and what lowers it
Two buildings identical on paper can receive very different offers. Here are the factors that truly tip the scales for a direct buyer.
What RAISES the offer
- Rents close to market — less of a gap to close means an already-high NOI and lower management risk.
- Controlled expenses — insurance, energy and maintenance kept in check flow straight through to net income.
- A building in good condition — a recent roof, windows, brickwork and systems avoid a discount for upcoming work.
- A sought-after area — a location with strong rental demand and low vacancy justifies a lower cap rate (and therefore a higher price).
- Clear leases and reliable tenants — predictable income is worth more than uncertain income.
What LOWERS the offer
- Below-market rents — every dollar of missing rent eats into the NOI, and therefore the capitalized value. Rent-up potential exists, but the buyer rarely shares all of that future value.
- Major work to anticipate — roofing, foundation, windows or code upgrades are deducted directly from the price.
- Vacancy or problematic vacant units — unproven income is discounted income.
- Problematic leases — frozen rents, verbal agreements, tenants in dispute or unfavourable clauses raise risk and reduce the offer.
Key takeaway: the best way to raise a building's value before selling is to document its income, bring rents close to market where possible, and address the small repairs that worry a buyer.
A direct buyer's offer vs a "market" price with a broker
The price listed on Centris with a broker and the offer from a direct buyer do not follow the same logic. The "market" price aims to attract as many buyers as possible, to spark competing bids, and ultimately includes the brokerage commission that the seller finances. A direct buyer's offer, by contrast, is about certainty and speed.
ImmoMulti is a direct buyer of multi-unit properties on the North Shore — not a broker. That concretely changes the equation for the seller:
- Zero commission — you pay no brokerage fees; what we offer is what you receive (less your usual notary costs).
- Speed — a firm, priced offer within 48 h and a closing on the timeline that suits you.
- No financing condition — we buy with our own capacity, without the chain of uncertainty of a buyer who has to get their loan approved.
- Off-market discretion — no public listing, no string of showings, no sign on the lawn: a private and confidential transaction.
The right move: use this calculator to get a ballpark figure, then compare a direct offer against a traditional sale scenario. Think too about the rest of our tools, and reach out when you're ready to compare a real offer.
Ready to see our real offer? Send us your building's figures and receive a firm, priced offer with no obligation, within 48 h. Get an offer from ImmoMulti →
Frequently asked questions about calculating a purchase offer
You enter the revenue, expenses and unit mix (number and type of units). The tool normalizes expenses, calculates net income and applies a market multiplier (NOI multiplier) to estimate an offer range.
On the property's normalized NOI and a net income multiplier (NOI multiplier) specific to the multiplex market. It's the numbers, not the appearance, that determine the value of an income property.
It is the operating income adjusted with prudent, standardized assumptions (vacancy, management, maintenance, miscellaneous costs), to reflect the actual performance of the property regardless of how it is currently managed.
Because every landlord manages differently. Normalizing allows properties to be compared on a fair basis and avoids overvaluing a property whose expenses are temporarily low.
No. It is an indicative estimate to give you a ballpark figure. An actual ImmoMulti offer takes into account a full file review and a property inspection.
Rental income, main expenses and the unit mix (2½, 3½, 4½, etc.). The more accurate your figures, the more reliable the estimate.
The multiplier depends on the size, location, condition and potential of the property. A larger, better-located building generally justifies a higher multiplier.
The base estimate starts from the current NOI. Major planned work is then considered during the actual file review by our team.
Yes. The calculation is done in your browser and is used solely to generate your estimate. Nothing is published or shared without your consent.
Submit the property information via the form: you receive a written purchase offer within 48 h, at no cost and with no obligation.
We start from the property's normalized net operating income (NOI), which we capitalize at the North Shore market rate, then we account for the condition of the building, the work to anticipate and what the financing (LTV, DCR) actually allows. Because we are direct buyers, there is no brokerage commission to finance into the price.
No. The calculator's estimate is indicative and serves to give you a ballpark figure. A firm, priced offer from ImmoMulti is sent to you within 48 h after a review of your financial documents, at no cost and with no obligation.
Looking to acquire a multiplex?
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