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Port Stanley Real Estate — Jason Froude, RE/MAX

RE/MAX Advantage Realty Ltd., Brokerage
Jason Froude
Investor Guide · London, ON · 2026
519·932·0780 Book a call
London, Ontario · Q1 2026

Ontario’s most
underrated
investment market.

Cap rates, neighbourhoods, BRRR math, financing, and the specific risks that catch new investors every year — from twenty years of underwriting London Ontario rentals.

Investor & Rental Property Guide 2026
Your agent
Jason Froude
Brokerage
RE/MAX Advantage Realty
Call or text
519-932-0780
600K+
London CMA
Population
25K+
Off-Campus Renters
Annually
7.5%
Top Cap Rate
SoHo / East
40%
Below GTA
Average Price
Why London

Fundamentals
vs. narrative.

A real city with two universities, a hospital corridor, diversified employment, and entry prices still 40–45% below the GTA. The window is narrower than 2022 — but the math still works.

I have been transacting in this market for twenty years. I have watched investors from Toronto, Mississauga, and Oakville quietly arrive in London since 2019, pick up legal duplexes and triplexes in Old North and Old South for what a one-bedroom condo costs in their home market, and run them at cap rates the GTA has not seen since 2014.

The window is not closing — but it is narrower than it was in 2022, and the strategies that work today are different from the ones that worked then.

This guide is the version of the conversation I have when an investor calls me for the first time. What pays. What does not. Where the rent is real and where it is wishful. And the specific risks I see investors get wrong, every year, without exception.

Demand drivers

What’s actually
moving the market.

Six fundamentals supporting rental demand in London. None of them require a speculative bet to play out.

Population
1.5% / YR

Faster than Ontario avg.

London CMA crossed 600,000 in 2025 and continues to grow steadily — a real demand floor, not a forecast.

Universities
81KSTUDENTS

Western + Fanshawe

Roughly 25,000–30,000 off-campus renters every year. The pool refreshes annually whether the market is hot or cold.

Healthcare
18KJOBS

Hospital corridor

LHSC, Victoria, St. Joseph’s, research institutes. The single most reliable long-term tenant class in this city.

Tech & insurance
Growing

White-collar tenants

Libro, TD Insurance, Info-Tech, Western Discovery Park cluster. Family-sized units, full-year leases, professional renters.

GTA spillover
2HFROM TO

The 401 corridor

Investors and buyers priced out of the western GTA continue to look at London. Supports both rental demand and exit liquidity.

Price gap
~42% BELOW GTA

Duplexes start in the $600s

Average single-family $640K–$700K in early 2026. Legal duplexes from the high $600s, triplexes from the low $800s in the right areas.

Neighbourhoods

Where to buy,
by use case.

Not every London neighbourhood is the same investment, and the cap-rate spread across the city is wider than people realize. Five areas, with the trade-offs I would walk you through in person.

Rank 01
Old North
Premium Western student rental zone

Tree-lined streets, century homes, walkable to campus. Per-room rents running $850–$1,100 for a furnished room with shared kitchen and laundry. A five-bedroom legal student rental can gross $4,500–$5,500/month.

Best for Premium student rentals, faculty house hacks, long-hold appreciation.

Watch out RRL enforcement is real here — unlicensed operators are being fined.

Entry price
$750K–$1.25M
Cap rate
4.8% – 6.0%
Rank 02
Old South
Heritage, stable, family rentals

Strongest neighbourhood character in the city. Wortley Village walkability, century homes, established schools. Tenants are families, healthcare workers, university faculty. Vacancies low, turnover low, rent collection easy.

Best for Family long-term tenants, duplex conversions, BRRR plays on heritage homes.

Watch out Not undervalued — cap rate has to be earned through value-add work.

Entry price
$700K–$1.1M
Cap rate
4.5% – 5.5%
Rank 03
SoHo / East London
Highest yield, higher management

The highest cap rates in London proper. Single-families $480K–$580K, legal duplexes high-$500s to mid-$600s. I have closed properties this year running 6.5%–7.5% on the actual rent roll. The neighbourhood has been improving steadily.

Best for Cash-flow-first investors, multi-unit conversions, BRRR on undervalued stock.

Watch out Tenant screening matters more. Hire a property manager who knows the area.

Entry price
$480K–$680K
Cap rate
6.0% – 7.5%
Rank 04
North London / Masonville
Stability and family tenants

North of Fanshawe Park Road. Newer housing stock, top-rated schools, professional families. Cap rates are lower (4.2%–5.0%) but tenant turnover is the lowest in the city. Set up a property and forget it for a decade.

Best for Single-family long-term holds, 30-year buy-and-hold, low-management strategies.

Watch out Not a yield play — appreciation and stability play. Few legal duplexes available.

Entry price
$700K–$1.1M
Cap rate
4.2% – 5.0%
Rank 05
Downtown / Core
Condo rentals, niche plays

More rental demand than people think — hospital corridor, Western downtown faculty, growing professional core. But condo cap rates are tight (3.5%–4.5%) and condo fees eat into yield.

Best for Condo investors, healthcare worker rentals, professional couple rentals.

Watch out Generally not recommended as a first investment unless you want a hands-off profile.

Entry price
$340K–$520K
Cap rate
3.5% – 4.5%
Strategies

Property type,
by profile.

Five strategies that actually work in London Ontario. Pick the one that matches your time, capital, and risk profile — not the one that looks best on paper.

Strategy 01

Single-Family Long-Term Rental

Buy a 3–4 bedroom in North London, Old South, or East London. Rent to a family or professional couple. Sign a 1-year lease, plan to renew. Almost zero day-to-day management, slow but steady appreciation. The right strategy for a first-time investor or out-of-town buyer.

Cap rate · 4.5–6.0%Risk · Low
Strategy 02

Legal Duplex / Triplex

Where the real cash flow is in London. A legal duplex in Old South or East London produces 25–40% more income than a single-family at a similar purchase price. The City of London actively encourages secondary-suite conversions; permitting is reasonable.

Cap rate · 5.5–7.5%Risk · Medium
Strategy 03

Student Rental

Highest gross rent, most ways to lose money. Per-room rentals near Western or Fanshawe gross $4,000–$6,000/month on a 4–6 bedroom house. RRL enforcement is real, September lease cycles are unforgiving, wear-and-tear is 2–3× a family rental.

Cap rate · 4.8–6.0%Risk · High
Strategy 04

BRRR Play

Buy tired stock in Old South or East for $480K–$540K, put $40K–$80K into kitchen, baths, flooring and a basement legalization, lease as duplex at $3,200–$3,800/month, refinance on the new appraisal. Not recommended for first-time investors.

Cap rate · 6.0–7.5%Risk · High
Strategy 05

Mid-Term Furnished

Full Airbnb on non-principal residence is a difficult path in London. What works: 30-day minimum stays targeting travelling nurses, locum doctors, relocating professionals. Hospital-corridor properties produce 30–50% above long-term gross rent.

Gross uplift · +30–50%Risk · Medium
Cap rates 2026

Realistic returns,
net of reality.

Based on current transaction data and active rent rolls Q1 2026. Net of vacancy, taxes, insurance, maintenance, and management — not the headline grosses an MLS listing will quote you.

Property type / area
Typical price
Cap rate
Single-family North London
$700K – $1.1M
4.2 – 5.0%
Single-family Old South
$700K – $950K
4.5 – 5.5%
Single-family East London / SoHo
$480K – $680K
5.5 – 6.5%
Legal duplex Old South
$850K – $1.1M
5.0 – 6.0%
Legal duplex East London / SoHo
$580K – $780K
6.0 – 7.5%
Triplex East London / SoHo
$780K – $1.05M
6.5 – 7.5%
Student rental 5BR Old North
$850K – $1.25M
4.8 – 6.0%
Condo Downtown / Masonville
$340K – $520K
3.5 – 4.5%
Mid-term furnished Hospital corridor
$520K – $720K
5.5 – 7.0% gross
Important: these cap rates assume realistic rents net of vacancy, property tax, insurance, maintenance, and management. They are not MLS headline numbers. Always underwrite to net.
Cash flow calculator

The real
numbers.

Underwrite a typical London duplex live. Defaults are the East London $640K example from this guide. Numbers reflect Q1 2026 rates and honest reserves — conservative, not optimistic.

Purchase Price$640,000
$300K$1.5M
Gross Monthly Rent$3,650
$1,500$9,000
Down Payment20%
20% (min)40%
Mortgage Rate5.40%
3%8%
Annual Property Tax$5,040
$2K$15K
Investment Snapshot
Cap rate (net)
5.9%
NOI ÷ purchase price
Cash flow / mo
−$581
Negative carry at 20% down
Mortgage P+I
$2,860
30-yr amort, semi-annual
Operating Expenses
$1,371
Tax, ins, mgmt, maint, vacancy
NOI / year
$37,440
Net operating income
Cash to Close
$143,500
Down + closing costs
Principal Paydown / Yr
$8,200
Equity built by tenants
Total Return / Yr
~+$1,228
Cash flow + paydown · pre-appreciation

Operating expenses model 8% property management, 8% maintenance, 5% vacancy, $2,220/yr insurance, plus your property tax. CMHC does not apply to investment properties (20% down minimum on 1–4 unit rentals). Mortgage amortization defaults to 30 years per current investor norms. Confirm property-specific numbers with your lender, broker, and lawyer.

Risks & pitfalls

Where investors
get burned.

Six London-specific risks that I see, every year, on properties that looked good on paper. Build them into your underwriting — not your post-close surprise list.

01

RRL enforcement

The City of London’s Residential Rental Licensing program covers most multi-unit rentals near Western and Fanshawe. Licences are not automatic. Verify the licence is current AND transferable on every student rental, and budget for bringing the property up to current code if it is not.

02

Lease cycle timing

Student rentals turn over late August / early September. Miss September lease-up and you are usually carrying the unit empty until January at earliest — sometimes the next September. That is 4 months of mortgage with no rent.

03

Condo oversupply

Some downtown buildings run over 30% investor ownership — rental supply spikes in lease-up season and rents are softer than they look. Ask for the investor-owned ratio before you buy. Anything above 25% is a yellow flag.

04

Insurance pricing

Carriers in 2026 are pricing aggressively on knob-and-tube wiring, 60-amp service, and original galvanized plumbing. Get an insurance quote before firm — not after. Some properties are uninsurable at standard rates.

05

RTA / LTB backlog

Ontario’s RTA is tenant-friendly and the Landlord and Tenant Board backlog runs 6–10 months in 2026. A bad tenant can cost you a year of unpaid rent. Tenant screening is the highest-leverage skill in this game.

06

Basement legalization

“Easy basement conversion” usually is not. Real legal secondary-suite work runs $35K–$80K with a 6–14 month timeline from purchase to second tenant moving in. Budget realistically — the conversion still pays back, but the timeline must be in your model.

Financing 2026

How the
money flows.

Investor financing rules, the house-hack entry point most buyers miss, and the lender choice that decides whether you can scale past property three.

House hack · the best entry

Owner-occupied financing on a duplex

Live in one unit of a duplex or triplex for at least one year and you qualify for owner-occupied financing — as little as 5% down on the first $500K, 10% on the portion to $1.5M. The fastest path into a multi-unit property in London for a first-time investor. After 12 months, refinance, move out, convert to investor financing.

Investor financing

20% down minimum on rentals

OSFI’s regulatory floor: 20% down minimum on 1–4 unit non-owner-occupied rentals. No insured-mortgage path. 5+ unit buildings move to commercial structure (25–35% down depending on lender and loan size).

Rental qualification

Lenders use 50–80% of rent

A-lenders typically add back 50% of subject rental income. B-lenders and credit unions often go 70–80%. Lender choice matters as much as rate when scaling.

BRRR refinance

6–12 month seasoning

Most major lenders require 6–12 months of seasoning before refinancing on new appraised value. You carry the property at the original mortgage through that period — plan the cash flow accordingly.

Q1 2026 rates

~0.2–0.4% above owner-occ.

Investor 5-year fixed running 5.30–5.65%; variable 5.50–5.80%. Stress test = contract rate + 2%. I work with three brokers who specialize in investor financing.

The process

Nine steps,
no surprises.

From the first call to your tenants’ first rent cheque. The version I walk every investor client through.

  1. 01

    Discovery call

    30–45 minutes. Goals, yield vs. appreciation, hands-on vs. hands-off. Which neighbourhoods and property types fit you.

  2. 02

    Mortgage pre-approval

    Written pre-approval from a lender that funds investment properties — not just a soft pre-qual. I’ll connect you to brokers.

  3. 03

    Search & underwriting

    5–10 active and pre-MLS properties per week. Each comes with a one-page underwrite: comps, taxes, insurance, projected cap rate.

  4. 04

    Showings

    3–6 properties together. Foundation, roof, mechanicals, basement layout, tenant situation, comparables.

  5. 05

    Offer strategy

    Typically 1–4% below ask. Conditions on financing, inspection, status, insurance, and lease/RTC review for tenanted properties.

  6. 06

    Inspection

    London inspector who knows insurance flags, knob-and-tube, basement moisture. $550–$950 depending on units.

  7. 07

    Financing finalization

    Lender appraisal. If it comes in low, we revisit — usually a price reduction is negotiable rather than walking.

  8. 08

    Lawyer + closing

    Title, tenancies, rental licence (for student rentals). London investor lawyers I work with: $1,400–$1,900 including disbursements.

  9. 09

    Post-close

    Tenant onboarding, lease setup, property manager handoff, quarterly check-ins. Most clients buy property #2 within 24 months.

FAQ

Questions
I get a lot.

The five questions almost every new London investor asks in the first ten minutes of our discovery call.

The easy money — buying anything and watching it go up — ended in 2022. What replaced it is a market where careful underwriting still produces strong returns, particularly in legal duplexes and properly executed BRRR plays.

The investors who are doing well in London right now are the ones who treat it like a business, run real numbers, and pick the right neighbourhoods. The ones who are struggling bought condos in 2021 at peak, expecting them to keep appreciating at 15%/year. Those are different stories.

Depends on what you are optimizing for. Smaller centres — Sarnia, Strathroy, Woodstock, Stratford — often produce higher cap rates on paper but have thinner buyer pools when you sell, less tenant demand, and longer vacancy windows.

London gives you 600,000+ population, two universities, a hospital corridor, and provincial-average liquidity on exit. For most investors, the slightly tighter cap rate in London is worth the depth of the market. Exception: if you are running a cash-flow-only strategy with 25%+ down, smaller centres can pencil out very well.

Short answer: not on a non-principal residence. The city’s STR rules tightened in 2024 and the path to a profitable hands-off Airbnb in London is narrow.

The strategy that does work is furnished mid-term rentals — 30-day minimum, targeting travelling healthcare workers and visiting Western faculty. The hospital corridor (around University Hospital) is the strongest mid-term sub-market in the city. Gross rent 30–50% above long-term, regulatory exposure much lower.

I require the seller to provide: (1) current lease, (2) last 12 months of rent payment history, (3) RTA-compliant N1 history if rent increases were taken, (4) any LTB filings, and (5) written tenant agreement to a buyer walkthrough.

If any of those is missing or refused, I treat that as a red flag and we either renegotiate or walk. This is the single most-overlooked piece of due diligence on tenanted purchases in London.

Realistic timeline is 4–6 years from first purchase to a portfolio of 4–5 doors using conventional financing — faster with BRRR and strategic refinancing.

The constraint is rarely the down payment — it is the lender’s debt service tests. After 2–3 properties, most investors hit the wall on A-lender qualifications and have to move to credit unions or B-lenders for property 4+. That transition is something I plan for from day one with serious investor clients, because wrong sequencing on early purchases can lock you out of further growth at the lender level.

Why Jason

Local. Personal.
Honest.

What twenty years in this market gets you, and why my investor clients are mostly repeat business and referrals.

Twenty years in London real estate. Personal investor experience — I own and operate rentals in this city, which means when I tell you what works, it is not theoretical.

A network that includes the contractors who do legal duplex conversions, the inspectors who flag insurance issues before firm, the brokers who fund investor purchases, the lawyers who actually understand RTA-compliant tenancy transfers, and the property managers who run student rentals without burning the relationship with the city.

I do not chase commissions on properties that do not pencil. If a deal does not work — bad numbers, hidden issues, wrong neighbourhood for your goals — I will tell you that before you spend money on inspection, not after.

Ready to underwrite?

Honest numbers,
no commitment.

30 minutes on the phone. Talk about your goals. I’ll send you a property pipeline within 48 hours that matches your criteria, along with the Investment Property Calculator I share with every investor I work with.

Jason Froude
RE/MAX Mobility · Sales Representative
Call or text
519-932-0780
Email
jason@remaxmobility.com
Website
MobilityTeam.ca
Schedule a discovery call
RE/MAX Mobility · RE/MAX Advantage Realty Ltd., Brokerage · London, ON
Each Office Independently Owned and Operated. · Not investment advice.
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