Maximize Returns with Mixed-Use Properties

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In E087 of REI Hot Seat, Andrew Hines is joined by Jacob Campagnaro, David Hulshof, and Mark Luciano to discuss an intriguing real estate deal offering a 7% cash-on-cash return.
Mark Luciano, a newcomer to the show, provides an in-depth analysis of the deal, which is located in the Niagara region. The property, with an asking price of $1.7 million and a potential offer price of $1.6 million, features a mixed-use building primarily used for residential purposes with a small commercial component, making it eligible for CMHC financing.
The team delves into the specifics, highlighting the high-quality area, potential commercial tenants, and current leasing status. They emphasize the attractiveness of the deal due to its 6% cap rate on acquisition and potential for cash flow improvement through minor rent adjustments.
The discussion also covers the implications of mixed-use properties, the importance of detailed lease agreements, and strategies for managing and optimizing such investments. Overall, the episode provides valuable insights into evaluating and capitalizing on mixed-use real estate opportunities, including understanding cap rates, cash flow, CMHC financing, lease agreements, and property management. This episode is a must-watch for investors interested in high-yield real estate deals and the nuances of mixed-use property investment.
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E087 Maximize Returns with Mixed-Use Properties
02:11 Introducing the Guests
02:56 Deal Overview and Initial Discussion
03:52 Property Details and Location
05:02 Commercial Tenant Discussion
06:56 Financials: Cap Rate and Cash Flow
08:12 Property Management and CMHC Financing
10:20 Mixed-Use Building Challenges and Opportunities
12:30 Underwriting and Cash Flow Projections
14:45 Operating Costs and Efficiency
16:50 Quick Evaluation Tips for Properties
18:55 Discussing Lease Structures
20:35 Tips for Managing Mixed-Use Properties
22:55 HST Considerations for Mixed-Use Properties
25:25 Implications for Buyers and Property Managers
27:01 Advantages of Commercial Tenancies
28:30 Closing Remarks
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.