In the heart of Montreal, real estate investor Anna S. purchased a two-bedroom apartment in the Plateau-Mont-Royal neighborhood in early 2023. Her goal was to generate passive income through long-term rental, targeting young professionals and graduate students. By 2025, the unit brings in consistent net income of approximately $2,500 per month.

Here’s how the numbers break down.

The property was purchased for $620,000 CAD, with 25% down and a mortgage at 4.8% fixed for five years. Monthly mortgage payments amount to roughly $2,200. The unit was renovated with an additional $25,000 investment, including modern kitchen appliances, smart home systems, and upgraded flooring — allowing it to stand out in a competitive rental market.

The apartment is currently rented for $4,000/month, inclusive of utilities and internet. After property management fees, taxes, insurance, and maintenance (which total about $1,500 monthly), Anna nets $2,500. The vacancy rate has been 0% since listing, due to high demand in central Montreal and proximity to McGill University and the metro system.

What made this investment successful?

• Choosing a high-demand, walkable neighborhood with stable tenant demographics
• Offering a fully furnished, turnkey unit at a premium
• Minimizing vacancy through professional property management

This case demonstrates that even in a higher interest rate environment, well-selected properties in dynamic cities like Montreal can generate strong passive income. Success depends on location, quality, and understanding your target tenant profile.