Would You Buy This 9-Unit? London Multifamily Deal Breakdown

In Episode 148 of the REI Hot Seat, Dave and Jake break down an on market 9 unit opportunity in London, Ontario and walk through why it’s compelling even in today’s market. They cover the building’s strong exterior capex, unit mix, neighborhood fundamentals near Fanshawe College, and how they’re underwriting pricing to hit a six cap and attractive price per door.They also get into a topic investors ask about all the time, why we show acquisition versus stabilized value, how our underwriting sheet is used as a filter across hundreds of deals, and what “best case” lift looks like when market rents are achieved over time. From there they discuss CMHC strategy, debt coverage, capital required, cash on cash returns, and how buyers can think about funding down payments through joint ventures or home equity while still staying focused on cash flowing deals.Sign up to the REI Hot Seat Insider:https://www.jotform.com/form/241655418022249REI Hot Seat Instagram:https://www.instagram.com/reihotseat/David Hulshof Instagram:https://www.instagram.com/davehulshof.realestate/Jacob Campagnaro Instagram:https://www.instagram.com/jacob_campagnaro/EP 148Would You Buy This 9-Unit? London Multifamily Deal Breakdown0:07 Matching uniforms and should we drop the shirts0:34 Deal overview 9 unit in London and why the exterior is compelling1:02 Price target cap rate and price per door breakdown1:57 Location fundamentals near Fanshawe and tenant profile discussion4:16 Value add upside and what stabilized value could look like4:55 Acquisition versus stabilized numbers and why we model it this way6:34 The deal filter and why you need to analyze hundreds of deals8:06 CMHC strategy debt coverage and conservative interest rate assumptions10:00 Bond yields spreads and how lenders price deals12:18 Capital required cash on cash returns and why this is attractive15:58 Funding the down payment JVs lines of credit and home equity17:26 The risk of negative cash flow and what to avoidDISCLAIMER: 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.