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In E130 of the REI Hot Seat, Andrew Hines, Brad McCrae, and David Hulshof dive into a compelling off-market 15-unit deal in Port Dover, Ontario.
The property, geared toward a senior demographic, offers immediate cash flow and strong long-term upside, with tenants already preparing to vacate, providing natural turnover opportunities.
Priced at $2.1M, the deal boasts a 5.8 cap rate at purchase, 7% cash-on-cash return, and is fully metered for utilities—making it extremely landlord-friendly.
The trio discusses the broader appeal of investing in Ontario's smaller towns, especially as housing demand continues to rise amid growing immigration.
They highlight how tertiary markets like Port Dover offer deep value compared to urban centers, with strong rental potential and CMHC-backed financing options that make deals like this both accessible and profitable.
While small towns pose challenges for gathering data, the team outlines a process of validating assumptions with local property managers to ensure accuracy.
They also contrast the stability of Ontario markets—fuelled by sustained population growth—with more volatile U.S. cities where population decline can be a concern.
With nearly every unit currently under market rent, the building has substantial built-in upside. Andrew, broadcasting from sunny Florida, even hints that deals like this might just pull him back into Ontario investing.
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E130 Why Investors Are Quietly Fleeing Cities for Deals Like This One?
00:50 – Overview of the Deal
01:33 – Port Dover’s Lifestyle and Demographic Breakdown
02:31 – Estimating Rents in Tertiary Markets
03:44 – Using Nearby Towns for Rent Comparables
04:41 – Deep Discounts in Small-Town Acquisitions
05:39 – Immigration Trends and Housing Demand in Ontario
06:47 – Direct-to-CMHC Financing Strategy
07:18 – Deal Breakdown: Price, Cap Rate, Utilities
09:24 – Cash Flow, DCR, and Investor Returns
16:01 – Building Age, Condition, and Final Thoughts
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.