Q: What motivated you to build this larger multiplex?

Akin: I’d been renovating smaller two- and three-unit properties for years, but I wanted the experience of a ground-up development. The biggest draw was learning how to coordinate a full team—architects, consultants, trades, and city officials—while also navigating the Committee of Adjustment process. I knew it would be challenging, but it felt like the natural next step in my growth as a developer.

Why does motivation matter? Learn more on our Getting Started page.

Q: How did you finance your project?

Akin: Unlike smaller renovations where you might tap into a home equity line of credit (HELOC) or savings, a project of this scale needed multiple financing sources. I combined:

1. Cash Proceeds from Other Sales: Selling smaller rental properties freed up capital.
2. Home Equity Line of Credit (HELOC): Provided flexible funds for construction stages.
3. Friends & Family Loans: Covered shortfalls when costs went up unexpectedly.
4. Traditional Mortgage (Post-Completion): Once the building was finished, we refinanced with a regular bank.

For financing a small multiplex, banks tend to step in post-construction with a mortgage.  So earlier-stage funding often comes from sources like private lenders or non-bank institutions (such as Foremost Financial in Ontario). While construction loans from major banks can be more challenging to secure for smaller projects, there are alternative financing options that homeowners can explore to make their projects feasible.

Exploring financing options? Check out our Financing Options page.

Q: Did you encounter unexpected costs or budget overruns?

Akin: Absolutely. This was built during COVID, and some materials surged 50% in price—lumber tripled at one point. Our original budget was around $1.7 million, but we ended up spending nearly $2 million. Besides raw material costs, we got hit with “hidden” expenses like builder’s risk insurance and utility connection fees.

For anyone considering a project like this, keep a detailed budget that’s updated regularly—weekly, if possible. Always line up multiple quotes (I recommend at least three) and choose professionals based on a mix of trust, service, and cost. And, of course, have a generous contingency fund. I’ve learned projects nearly always cost more and take longer than you think.

Looking for tools to help manage your project? Check out our Resource Directory.

Q: What were the toughest financing challenges you faced?

Akin: The biggest challenge was securing financing during the construction phase. Major banks typically focus on standard mortgages for completed properties, so for a “missing middle” project—larger than a basement suite but smaller than a condo development—construction financing requires a different approach.

I ended up combining private capital and personal networks to cover the build. However,   once the building was done and had a track record of rental income, a standard mortgage from a regular bank became an option. But during construction, I primarily had to rely on private lending and personal funds.

Not sure what many of these terms mean? Check out our Glossary.

Q: Now that your five-unit building is complete, how has it affected your life and finances?

Akin: It’s been a challenging journey, but also incredibly rewarding in terms of experience gained. Financially, I’m in a solid position, but I’ve realized that managing a rental property of this size is more hands-on than people might expect. There’s ongoing work—maintenance, tenant inquiries, re-leasing units—but it’s all part of the process.

Looking back, if I were to do it again, I might explore building condos for sale, which would allow for individual unit sales, or scaling up to a larger development (20+ units) to access better financing options and efficiencies in construction.

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Q: You mentioned you’re planning an even larger garden suite next—what’s that about?

Akin: We recently got a building permit for what might be the biggest garden suite in Toronto to date—about 3,250 square feet including a basement. It’s another learning experience, but this time, I’m trying to apply all the lessons from my five-unit project.

The main takeaway: Always understand your “why?”—because it drives design, financing, and your long-term strategy.

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Q: What are your top two tips for others looking to build an ADU or multiplex?

Akin:

1. Simpler is Better – Any complexity in design or permitting eats into your schedule and budget. If you can just add a basement suite to an existing property, do it! Extensive structural changes or ground-up projects can balloon costs and timeframes fast.
2. Ground-Up Development is Expensive – Before you commit to a new build, see if you can buy an existing multiplex or property that’s vacant. You’ll avoid development-phase risks, which can lead to unforeseen losses if things run over time or budget.

Inspired to build your own ADU or multiplex? Learn how with our Step-by-Step Guide.