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In episode E138 of the REI Hot Seat, Andrew Hines, David Hulshof, and Jacob Campagnaro do a deep-dive deal analysis on a 23-unit power of sale multifamily building in St. Thomas, Ontario.

They walk through the nuances of underwriting this type of distressed property, which is fully renovated but vacant and missing appliances and a boiler.

The conversation covers how power of sale transactions differ from typical sales—banks require MLS listings, strict bidding timelines, and offer "as is, where is" sales with no representations or warranties, making due diligence crucial but limited.

They discuss challenges like renting out 23 units quickly in a cooling market, strategies such as furnished midterm rentals for visiting professionals, and the need for substantial upfront capital for carrying costs and renovations.

Using conservative assumptions, they model expected rents, costs for appliances and a boiler, and stabilization timelines, concluding that after refinancing (CMHC takeout), an investor might leave roughly $370K in the deal while achieving 12–13% cash-on-cash returns—potentially higher when factoring in mortgage paydown.

They stress that while this is not for undercapitalized or inexperienced buyers, it’s a solid opportunity for sophisticated investors able to manage the complexities and risks.

The episode ends with reflections on investment timelines, emphasizing that successful real estate strategies increasingly demand patience, scale, and careful underwriting in a market where easy flips are no longer the norm.

Don't forget to join the Insiders list for access to off-market deals and other unique opportunities.

Andrew's linktree : https://linktr.ee/theandrewhines

REI 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/

E138 Inside a Power of Sale Deal Breakdown

1:16 - St. Thomas Power of Sale Deal Intro

3:40 - Power of Sale Process Explained

9:02 - Rent Projections & Absorption Risk

11:08 - Furnished/Midterm Rental Strategy

12:46 - Renovation & Stabilization Costs

15:06 - Refi Analysis & Cash-on-Cash Returns

17:14 - Long-Term Investment Mindset

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.

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In episode E137 of the REI Hot Seat, Andrew Hines, Jacob Campanaro, and David Hulshoff dive deep into analyzing a 12-plex building deal in Waterloo while engaging in their signature candid banter.

They begin by exploring the paradox of rising vacancies in Ontario despite housing shortages, attributing it to factors like people consolidating households due to affordability issues, Ontario's slowing population growth, and a glut of new rental condos hitting the market.

The conversation shifts to the specific deal: a purpose-built 12-unit building with predominantly large three-bedroom, two-bath units—a rare configuration offering potential rental upside despite a higher per-unit acquisition cost.

Throughout, they emphasize the reality of underwriting conservatively in a buyer’s market, noting CMHC financing advantages, potential value-add opportunities even in fully occupied buildings, and the importance of filtering out overhyped deals with unrealistic seller numbers.

The team also reflects on broader market dynamics—including the challenges with pre-construction inventory flooding rental markets, regional vacancy variations, and the long-term investment appeal of Ontario despite short-term headwinds.

The episode closes on the importance of building spreadsheets, questioning assumptions, and maintaining a disciplined approach to ensure deals truly work without relying on optimistic projections.

Don't forget to join the Insiders list for access to off-market deals and other unique opportunities.

Andrew's linktree : https://linktr.ee/theandrewhines

REI 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/

E137 Avoid These Due Diligence Mistakes on Your Next Deal

01:45 – Overview of the Waterloo 12-Plex

03:20 – Rent and Price Per Unit Analysis

07:34 – Cap Rate and Income Breakdown

09:13 – Laundry Revenue Deep Dive

12:06 – Due Diligence and Underwriting Process

16:59 – Causes of High Vacancies

19:01 – Burlington Vacancy Example

25:08 – Buyer’s Market Opportunities

25:58 – CMHC Financing Strategy

28:56 – Cash Flow and Lift Potential

31:14 – Long-Term Appreciation and Exit Strategy

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.

Become an REI Hot Seat Insider: ⁠https://submit.jotform.com/info_Admin_info831/rei-hotseat-insider-sign-up-form

In episode E136 of the REI Hot Seat, Andrew Hines and Jacob Campanaro do a deep dive into the fundamentals of commercial and industrial real estate investing, with a focus on terminology, lease structures, and investor analysis techniques.

The episode responds to growing audience interest in commercial spaces like retail and industrial properties, shifting from the podcast’s usual multifamily content.

Jacob breaks down key elements of analyzing a commercial property including location, tenant quality, lease terms, rent escalations, and expense structures like triple net and gross leases.

Using examples like Shoppers Drug Mart and Beer Store, they explore how tenant strength, lease renewal options, and recoverable expenses impact value and investment returns.

They also discuss the importance of understanding market recovery costs, managing capital expenses through amortization, and preparing for tenant turnover risk.

The episode emphasizes due diligence and working with professionals, especially in complex commercial transactions, and wraps up by teasing a follow-up episode with a real mixed-use deal breakdown.

Don't forget to join the Insiders list for access to off-market deals and other unique opportunities.

Andrew's linktree : https://linktr.ee/theandrewhines

REI 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/

E136 How to Analyze Commercial Real Estate Deals Like a Pro

00:25 – Intro to Commercial Deal Analysis

01:25 – Key Terminology Overview

03:10 – Location and Tenant Basics

04:07 – Retail Commercial Example

05:15 – Lease Terms & Renewal Options

10:21 – Lease Types: Triple Net vs Gross

13:34 – Capital Expenses & Amortization

17:29 – Land Lease Example: KFC Inquiry

20:25 – Gross vs Semi-Gross Explained

22:15 – Rent Escalations & Revenue Breakdown

24:38 – Commercial vs Multifamily Risk

28:14 – Cap Rates vs Risk Tradeoff

30:02 – Conversion Potential & Exit Options

31:26 – Final Performa Walkthrough & Tips

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.