Finding Multifamily Deals That Actually Cash Flow in 2026

Stop Believing Every Deal Cash Flows

If you’ve been told “all multifamily deals cash flow,” you’ve been lied to. In 2026, most of the flashy listings don’t work under current financing. Cash flow isn’t automatic. It’s earned by knowing where to look and how to separate a real deal from an overpriced trap.

The good news? Cash-flowing properties are out there. The bad news? You won’t find them by following the herd.

Macro Context: Why True Cash Flow Is Scarce

• Debt Costs. With rates in the 4.5–5.5% range, thin NOI gets eaten alive by interest.

• Equity Gaps. Owners facing refinancing often need to inject cash they don’t have. That’s where discounts appear.

• Supply Problems. New development is stalled, so older stock is carrying the rental market.

Scarcity creates opportunity, but only for disciplined buyers who know how to dig.

Where Cash Flow Deals Actually Live in 2026

1. Distressed Refinances
   The best opportunities are coming from owners forced to sell. When debt matures and the bank demands more equity, many walk away. That’s where you step in.

2. Secondary Markets
   Hamilton, Windsor, London, Kitchener. These markets aren’t as sexy as Toronto, but rents-to-pricing ratios make sense. Investors chasing GTA prestige are the ones bleeding cash.

3. Off-Market Deals
   The real money doesn’t hit MLS. Brokers and mortgage specialists move properties quietly. OntarioMultifamily.ca is built as the hub connecting serious investors to those professionals.

Framework: How To Source Deals That Actually Work

Here’s how to separate signal from noise:

• Start With Brokers Who Specialize in Multifamily. Not residential agents. Actual multifamily brokers who know DSCR and cap rates.

• Watch Refinancing Volumes. Mortgage brokers know which properties are hitting renewal walls. Build those relationships.

• Dig Into Secondary Market Listings. Look at rent-to-price ratios. Compare average incomes in the area to average rents. If it doesn’t line up, walk away.

• Scrutinize Off-Market Packages. Don’t assume “exclusive” means “good.” Underwrite every deal like the seller is hiding something — because they usually are.

How To Underwrite For Real Cash Flow

Cash flow is math, not hope. Run it like this:

• Interest Rate Stress Test: Underwrite at today’s rate plus 1%. If it collapses, it’s not resilient.

• Vacancy Buffer: Assume at least 5% vacancy, even if “market is tight.”

• Expense Reality: Insurance, property tax, and utilities have been climbing faster than rents. Don’t pretend they won’t.

• DSCR Discipline: Aim for 1.25+. Anything below that is fragile.

Case Study: Windsor 12-Plex Distress Sale

• Asking Price: $1.9M

• NOI: $130K

• Financing: 70% CMHC at 5.1%

• DSCR: 1.31

The seller couldn’t inject the $400K equity needed to refinance at maturity. They sold at a discount. The buyer walked into positive cash flow with built-in upside.

Compare that to a Toronto condo rental, where rent covers half the mortgage. One is an investment. The other is a liability.

Red Flags That Kill Cash Flow

• Seller’s pro forma shows zero vacancy. Fake.

• Expenses are “rounded.” Translation: made up.

• Cap rate based on future rent assumptions. That’s speculation.

• Broker says “don’t worry about DSCR.” That’s exactly what you should worry about.

Investor Playbook

• Cash flow is scarce in 2026, but it exists. You need to hunt where others aren’t.

• Distressed refinances and secondary markets are where the best opportunities show up.

• Underwrite like a pessimist. If the numbers still work, that’s your deal.

• Build broker and mortgage broker relationships now — they’re the gatekeepers to off-market inventory.

• OntarioMultifamily.ca is where serious investors connect with professionals and deals that are filtered for reality, not hype.