$1.3M Build → $1.9M Value? 12 Bedroom Purpose-Built Rental Breakdown

Why It Matters

Upzoning combined with a cost‑effective, fully separated design delivers outsized returns, making similar multiplex projects a compelling model for Canadian real‑estate investors.

Key Takeaways

• Four-unit, 12‑bedroom multiplex built on upzoned Hamilton lot.
• Total project cost around $1.3‑$1.4 M, appraised at $1.9 M.
• Each unit has separate utilities, meters, and HVAC systems.
• Unfinished 1,500 sq ft basement allows future densification for additional units.
• Expected rent $1,250 per bedroom yields $15 k monthly income.

Summary

The video showcases the grand reveal of a purpose‑built 12‑bedroom multiplex in Hamilton’s west end, created after the municipality upzoned the lot under Bill 23. The four above‑grade units each span roughly 750 sq ft, feature three bedrooms, and are fully independent with separate utilities, meters, furnaces, and HVAC.

The developer acquired the property for about $300,000, spent $125,000 on planning, and incurred roughly $900,000 in construction costs, bringing total investment to $1.3‑$1.4 M. With an appraisal of $1.9 M and projected rents of $1,250 per bedroom, the asset promises around $15,000 in monthly cash flow, translating to strong leverage potential at 70‑80% LTV.

Key design details include 9‑ft ceilings, quartz countertops, stainless‑steel appliances, luxury vinyl plank flooring, and on‑suite laundry. An unfinished 1,500 sq ft basement with 9‑ft ceilings is left as a strategic reserve, allowing the owner to add more units if future zoning permits higher density.

The project illustrates how upzoning, efficient unit separation, and forward‑looking design can generate significant upside for developers. It serves as a template for investors seeking high‑yield, scalable multifamily builds in Ontario’s evolving regulatory environment.

Original Description

Are 12 bedroom purpose-built rentals the new blueprint for multi-unit investing in Ontario?

In this video, Yasser Majd from @555ConstructionManagementInc takes us inside a completed 12 bedroom purpose-built rental in Hamilton, Ontario and breaks down the full numbers behind the deal.

We previously documented the planning and construction phases of this project. Now, you’re seeing the final result along with the real costs, timeline, and return on investment.

This multi-unit development was built on a severed lot and features 4 above-grade units with 3 bedrooms each, for a total of 12 bedrooms. The project was completed in roughly 9 to 12 months from acquisition to occupancy.

Here’s what makes this deal stand out:

✅ Purchase Price: ~$300,000

✅ Planning Costs: ~$100K to $125K

✅ Construction Cost: ~$900,000

✅ Total Project Cost: ~$1.3M to $1.4M

✅ Appraised Value: ~$1.9M

✅ Rental Income: ~$1,250 per room

✅ Total Monthly Rent: ~$15,000

Each unit is fully self-contained with its own hydro panel, furnace, AC, gas meter, HRV, and tankless water system, allowing tenants to cover their own utilities and making management more efficient.

The building also includes a 1,500 sq ft unfinished basement with 9 ft ceilings, designed for future density expansion as zoning policies continue to evolve across Ontario.

This is a real example of how investors are using multiplex development, zoning changes, and bedroom count strategies to maximize cash flow and forced appreciation.

Projects like this are becoming more common as Ontario continues to push for higher density and missing middle housing.

If you're interested in building multi-unit rentals, student housing, or exploring missing middle development opportunities in Ontario, this video breaks down exactly what goes into a project like this.

Watch the full series on this project:

Construction Phase Video: https://www.youtube.com/watch?v=t3T5emzLW_E

Planning Phase Video: https://www.youtube.com/watch?v=cfBItU07ic0

Let us know in the comments what stood out most to you

The numbers, the layout, or the future expansion potential

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Connect with Yasser at 555 Construction Management Inc:

YouTube - https://www.youtube.com/@UCKvdW1KBTUJTDSJAEaMofPA

Website - https://555construction.ca/

Instagram - https://www.instagram.com/555construction_management_inc/

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Who is 555 Construction Management Inc?

555 Construction Management is a full-service construction and renovation company that has been providing top-notch services to its customers since its inception. With a team of experienced professionals, they are able to create innovative solutions that bring projects from concept to reality with good results.

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0:00 – Intro

0:53 – Exterior Tour

1:15 – Project Background + Value Add

1:57 – Upstairs Unit Tour (Unit 1 on 2nd Floor) & Construction Breakdown

3:49 – Cost Breakdown

6:21 – Project ROI Projection

7:29 – Upstairs Unit Tour (Unit 2 on 2nd Floor) & Finishes

9:15 – Basement Tour & Future Planning

11:07 – Connect With Yasser

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