An Edmonton homeowner is recovering in hospital Wednesday after a violent home invasion that left a suspected intruder dead and police searching for two others.

Three men entered the house on McConachie Boulevard in the city's northeast early Tuesday morning. They were allegedly searching for drugs and money — but police have said they targeted the wrong house and that the homeowners were uninvolved in the suspects' affairs.

The homeowners, a man and wife, were severely beaten, tied up, and blindfolded. The wife was released from hospital on Tuesday but the man, who several neighbours have said was a former member of the Canadian military, remained in hospital on Wednesday.

It's unclear exactly how the violence unfolded in the home.

"Shortly after the break and enter, I believe it was the couple that reported the call to police. They also reported that they heard shots fired in the home," said EPS spokeswoman Patrycia Thenu on Tuesday.

When asked if the homeowners were believed to be connected to the shooting, she said: "No, I don't think so. They heard shots, from what we know right now, from within the home."

Police arrived and found a man with gunshot shot wounds. Police have described him as being one of the suspects.

The residence next door is known to police and is being investigated, Thenu said.

Neighbours in the area, a new community located on the northeastern edge of the city, said what happened has left them feeling nervous.

Several mentioned the possibility of installing better security systems, or moving out of the neighbourhood altogether, as a result of the incident.