Side by Side Duplex | INVESTMENT
Side by Side Duplex
1.0 The Best of Both Worlds: The Side-by-Side Duplex
For many Edmonton investors, the side-by-side duplex represents the perfect blend of a residential feel and multi-family cash flow. Unlike an up/down duplex, where tenants live on top of each other, a side-by-side property functions like two attached single-family homes. Each unit has its own separate entrance, its own yard space, and often its own basement, offering a level of privacy and autonomy that is highly attractive to a premium tenant base.
2.0 Key Advantages of a Side-by-Side Duplex Investment
This property type offers distinct benefits that make it a cornerstone of many successful real estate portfolios.
Attracts High-Quality, Long-Term Tenants: The single-family home feel is a major draw for small families, couples, and professionals who desire more space and privacy than an apartment can offer. These tenants often stay longer, reducing your turnover costs.
The Ultimate House Hacking Machine: A side-by-side duplex is arguably the best layout for house hacking. You can live comfortably in one unit with your own yard and privacy while the tenant in the adjacent unit pays down a significant portion of your mortgage.
Simplified Management: With only two units to manage and tenants who often take more “ownership” of their space, side-by-side duplexes can be less management-intensive than larger multi-family properties.
Strong Appreciation: Because they appeal to both investors and traditional homebuyers, side-by-side duplexes often experience strong, stable appreciation in value.
3.0 What to Look For When Buying a Duplex in Edmonton
A successful duplex investment starts with finding the right property. Here’s what to focus on:
Separate Utilities: The ideal investment duplex has separate meters for gas, electricity, and even water. This allows you to have tenants pay their own utilities, leading to more predictable expenses and responsible usage.
Functional Layouts: Look for layouts that mirror modern single-family homes, with at least 2-3 bedrooms per side, a functional kitchen, and adequate living space. Properties where both sides are a mirror image are often the easiest to manage and value.
Location, Location, Location: As with any rental, location is key. Target neighbourhoods with good schools, easy access to transit and amenities, and a strong community feel. Many of Edmonton’s mature and developing communities offer excellent duplex opportunities.
4.0 Financial Snapshot: A Typical Edmonton Duplex
Let’s look at a hypothetical side-by-side duplex in a desirable rental neighbourhood:
Purchase Price: $600,000
Monthly Mortgage (approx.): $3,200
Rent from Unit A: $1,800/month
Rent from Unit B: $1,800/month
Total Income: $3,600/month
Expenses (Tax, Insurance, Maint.): $700/month
Estimated Monthly Cash Flow: -$300 (Negative cash flow before tax benefits)
(Note: While this example shows a slight negative cash flow, a house-hacker living in one unit would have their housing cost reduced to just $1,400/month [$3,200 mortgage – $1,800 rent]. For a pure investor, the principal paydown by tenants and long-term appreciation are the primary drivers of wealth.)
For a complete overview of multi-family strategies, return to our Guide to Multi-Family Investing in Edmonton.
This is just one of many investment strategies. For a complete overview, return to the Ultimate Guide to Real Estate Investing in Edmonton.
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Common Investor FAQs
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What is a good cap rate for an investment property in Edmonton?
While cap rates vary by neighbourhood and property type, a good target for a stabilized residential property in Edmonton as of Fall 2025 is typically between 4.5% and 6%. High-demand areas near the University or with legal suites may be on the lower end, while properties requiring some renovation might offer higher initial cap rates.
What makes a basement suite “legal” in Edmonton?
A legal suite in Edmonton must meet specific safety and building code requirements. Key criteria include a separate entrance, specific window sizes for egress, a minimum ceiling height (typically around 6’11”), and independent heating and ventilation systems. Always verify the property has the required development and building permits from the City of Edmonton.
Which areas in Edmonton are best for cash-flowing properties?
For consistent cash flow, focus on areas with strong rental demand and more moderate purchase prices. Neighbourhoods near major institutions like the University of Alberta (Strathcona, Garneau), NAIT (Westwood, Prince Rupert), or those with easy access to transit and industrial hubs often perform well. Newer suburbs with high concentrations of young families also offer excellent opportunities.
How much of a down payment do I need for a rental property in Canada?
For a non-owner-occupied investment property, the minimum down payment is 20% of the purchase price. If you plan to live in one of the units (i.e., “house hacking” a duplex or home with a legal suite), you may be able to purchase it with a lower down payment as it’s considered owner-occupied.
Is Edmonton a better market for appreciation or cash flow?
Historically, Edmonton is known as a strong cash flow market. Compared to cities like Vancouver or Toronto, Edmonton’s property prices are significantly more affordable relative to average rental rates, allowing investors to see positive monthly income more easily. While the city does experience steady long-term appreciation, the primary draw for most investors is the potential for immediate and consistent cash flow.
