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In episode E139 of the REI Hot Seat, Andrew Hines, David Hulshof, and Jacob Campagnaro dive deep into the analysis of a ten-unit turnkey townhome deal in Cambridge, Ontario.

The trio begins by examining the property's valuation challenges, emphasizing how traditional metrics like price-per-door or cap rates often fail to capture real value—especially in mixed-use or townhouse-style properties.

They critique the listing's $4 million price tag, which doesn't yield acceptable cash-on-cash returns or debt service coverage.

Instead, they suggest a $3.6 million offer would meet CMHC's lending standards and produce a stronger return profile, particularly since the units are separately metered and well-renovated.

The conversation expands to broader market dynamics, highlighting how most listings remain overvalued due to sellers chasing the market downward.

They stress the importance of submitting offers—even aggressive ones—because many sellers eventually circle back when reality sets in.

The hosts outline how power-of-sale and distressed deals are becoming more common, effectively resetting market comps.

Throughout, they emphasize their systematic approach: applying a strict underwriting framework to filter for deals that truly work and advising others to ignore seller emotions and stay disciplined.

Despite current challenges, the hosts agree it's a strong buyer’s market—flush with opportunity for those with capital, patience, and a well-defined investment box.

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/

E139 The Brutal Truth About Today’s Seller Expectations

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.