E121 The #1 Mistake Investors Make in Small Markets?
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In E121 of REI Hot Seat, Andrew Hines is joined by Brad McCrae to discuss a nine-unit residential building investment opportunity in Port Colborne, Ontario. The building, originally mixed-use but converted to fully residential years ago, offers a compelling value-add opportunity with seven of the nine units currently vacant. Brad highlights the strategic advantage of this project, particularly given the expected housing demand surge driven by the $1.5 billion battery plant investment in the region, projected to bring over a thousand jobs. The plan involves minimal renovations, with an average budget of $20,000 per unit and additional basement storage for extra income. The goal is a full cash-out refinance within a year, making it an ideal BRRR strategy. The discussion expands into broader economic trends, including the impact of rental market shifts, immigration, and macroeconomic factors like tariffs and interest rates. Andrew and Brad explore the potential long-term implications of tariffs on inflation, rent, and investment decisions, emphasizing how market fluctuations create opportunities for savvy investors. The episode concludes with insights into financing, expected cap rates, and the benefits of investing in secondary and tertiary markets like Port Colborne, where strong fundamentals and lower competition provide room for attractive deals. They also discuss the role of AI in streamlining investment research and decision-making, before wrapping up with a reminder to join the REI Hot Seat insiders list for exclusive off-market deals.Don't forget to join the Insiders list for access to off-market deals and other unique opportunities.Andrew's linktree : https://linktr.ee/theandrewhinesREI Hot Seat Instagram: https://www.instagram.com/reihotseat/E121 The #1 Mistake Investors Make in Small Markets?01:27 - Market Fundamentals & Economic Growth in Port Colborne07:51 - Investment Strategy – The Perfect BRRRR?09:54 - Financial Breakdown & Cash Flow Analysis14:54 - Tariff Discussion & Potential Economic Implications18:06 - Property Features & Upgrade Opportunities19:32 - AI, Research, & The Future of InvestingDisclaimer: 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.