Can This Deal Boost Your Multifamily Portfolio?

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In E085, I'm joined by Zac Willms and David Hulshof to review a six-unit turnkey apartment building in Ontario. Zach is the listing agent for this fully renovated property, which features new electrical, plumbing, flooring, and kitchens. The building is designed for CMHC's MLI Select program, focusing on energy efficiency, but recent rule changes mean the current owner can't refinance, offering a great opportunity for a new buyer.
The 1950s or 1960s brick building has a flat roof and separate hydrometers. Heat is managed through unit heat pumps with backup baseboard heating. Located in Thorold, it's close to Brock University and new developments, making it attractive for renters.
Financially, the property brings in $10,200 monthly from rent, with potential for increases. Additional income could come from laundry facilities. Taxes are estimated at $7,700 annually post-renovation.
Due diligence, including environmental assessments, appraisals, and building condition analyses, is crucial. While initial cash flow isn't huge, the property offers a stable investment with significant upside due to quality renovations and a strategic location. This episode highlights the importance of a thorough, methodical approach to multifamily investing, focusing on stable, lower-risk opportunities with steady returns and future growth.
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E085 Can This Deal Boost Your Multifamily Portfolio?
1:16 - Overview of the Six-Unit Building
2:00 - CMHC MLI Select Program and Application Process
3:06 - Due Diligence: Appraisal, Environmental, and Building Condition Analysis
4:35 - Market Trends and Buyer Documentation
5:22 - Building Features and Renovations
6:31 - Additional Property Details and Improvements
7:27 - Location Benefits: Proximity to Brock University
8:19 - Financial Breakdown: Rent Roll and Income Potential
9:22 - Tax Reassessment and Insurance Estimates
10:23 - Maintenance and Management Costs
12:00 - Cash Flow and Replacement Reserves
13:16 - Advantages of Low Downpayment and High Amortization
15:52 - Future Development and Additional Income Potential
18:52 - Closing Process and CMHC Approval Timeline
22:04 - Interest Rates and Popularity of MLI Program
22:32 - Final Thoughts on Investment Potential
23:01 - Future Episodes and Expanded Team Discussion
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.