E143 Why This House Hack Could Be the Deal of the Year

Become an REI Hot Seat Insider: ⁠https://submit.jotform.com/info_Admin_info831/rei-hotseat-insider-sign-up-formIn episode E143 of the REI Hot Seat, Andrew and David analyze a pair of multifamily investment opportunities. The first deal is a 10-unit townhouse property in Shallow Lake, just outside Owen Sound. With a mix of one- and two-bedroom units, a strong rent roll of around $14,000 per month, and no major capital expenditures required, the property offers investors low barriers to entry and immediate cash-flow potential. At an underwriting purchase price of $1.6M, the deal models a nearly 6.6% cap rate, an 8.7% cash-on-cash return, and healthy debt coverage if financed through CMHC—an attractive, lower-risk play for investors seeking straightforward returns.The conversation then shifts to a second opportunity: a seven-unit, purpose-built brick building in Brantford listed for $900K, recently reduced from $1M. Despite its solid structure and favourable per-unit pricing, the property has struggled to sell due to outdated rents averaging just $751. Andrew and David discuss challenges and creative strategies to reposition such a building, including house hacking, offering optional tenant upgrades in exchange for modest rent increases, and avoiding controversial rent-eviction practices. With thoughtful capital injection and tenant-friendly tactics, they highlight the potential to more than double the building’s value—possibly reaching a $2.2M refinance exit after stabilizing rents. The episode underscores how quickly investor sentiment has shifted in Ontario’s multifamily market and stresses the importance of planning, cash-flow modeling, and long-term strategy when evaluating deals.Don't forget to join the Insiders list for access to off-market deals and other unique opportunities.Andrew's linktree : https://linktr.ee/theandrewhinesREI Hot Seat Instagram: https://www.instagram.com/reihotseat/Jacob Campagnaro Instagram: https://www.instagram.com/jacob_campagnaro/David Hulshof Instagram: https://www.instagram.com/davehulshof.realestate/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.---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.