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.

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EP 148
Would You Buy This 9-Unit? London Multifamily Deal Breakdown

0:07 Matching uniforms and should we drop the shirts

0:34 Deal overview 9 unit in London and why the exterior is compelling

1:02 Price target cap rate and price per door breakdown

1:57 Location fundamentals near Fanshawe and tenant profile discussion

4:16 Value add upside and what stabilized value could look like

4:55 Acquisition versus stabilized numbers and why we model it this way

6:34 The deal filter and why you need to analyze hundreds of deals

8:06 CMHC strategy debt coverage and conservative interest rate assumptions

10:00 Bond yields spreads and how lenders price deals

12:18 Capital required cash on cash returns and why this is attractive
15:58 Funding the down payment JVs lines of credit and home equity

17:26 The risk of negative cash flow and what to avoid

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.