E101 What’s Causing So Many Investors to Take Notice of This Deal?

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In E101, of REI Hot Seat, Andrew Hines welcomes Zac Willms, David Hulshof, and Jacob Campagnaro to discuss an 8-unit apartment building investment deal in London, Ontario. The group reviews the details of the property, which is undergoing renovations, including the addition of two basement units and a total refresh of the existing units. The building already has major upgrades, such as a new roof and separate utilities.

David Hulshof runs the numbers and highlights that the project is expected to cost approximately $400,000 in renovations, bringing the total investment to around $1.4 million. With current cap rates and projected rent figures, the deal presents a potential full BRRRR (Buy, Rehab, Rent, Refinance, Repeat) opportunity, with the possibility of pulling out all invested capital plus an additional profit. The team also discusses factors like CMHC financing, loan-to-value ratios, and market conditions, with the likelihood of interest rates decreasing, making the deal even more attractive.

The property is in a transitioning B/C+ neighborhood in London, with growing investor interest. It offers vacant possession, eliminating the challenges of tenant management during renovations. The episode concludes with Andrew encouraging listeners to join the Insiders List for access to off-market deals and exclusive opportunities like this one.

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E101 What’s Causing So Many Investors to Take Notice of This Deal?

1:01 - Discussing an 8-Plex Deal in London, Ontario

2:10 - Property Details: Retrofit, Roof, and Renovations

3:05 - Tenant Situation and Eviction Process

4:54 - Numbers Breakdown: Purchase, Renovation, and Financing

7:01 - Cap Rate and Expected Valuation

9:12 - Basement Unit Renovations Overview

10:21 - Loan Details: 85% Loan to Value

14:38 - Financing Rates and Market Trends

17:00 - Cash Flow and Building Vacancies

19:04 - MLI Select Program: Pros and Cons

20:55 - Area Overview: London Neighborhood Details

23:25 - Conclusion and Final Thoughts

Disclaimer: This episode, as with every episode of this show, should NOT be considered as advice. Investment advice is NEVER given on this show. Always consult a competent investment advisor before making an investment decision.

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Andrew Hines is a seasoned real estate investor, business-builder, educator, and podcast host, well-recognized for his extensive experience in the field. Andrew graduated with an HBA from the Richard Ivey School of Business in 2008 and spent three years teaching introductory business at Western University as a Lecturer. He has been investing in real estate since 2011 and completing value-add projects since 2015, primarily in the luxury student rental space. Andrew started a project management company for building out new-construction townhomes in 2016 and has since built over 50 residential units throughout Southwestern Ontario. Andrew is an advocate for treating real estate investing like a business and uses his experience in his educational endeavors, coaching numerous investors on strategies to achieve financial independence and scale their portfolios effectively.

His podcast, "The Andrew Hines Real Estate Investing Podcast," serves as a platform for sharing insights, strategies, and success stories, connecting a community of like-minded individuals passionate about real estate investing. With a background that blends practical investing experience and investor-focused work, Andrew has become a pivotal figure in the Canadian real estate investing community.