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In episode E133 of the REI Hot Seat, Andrew Hines and David Hulshof present a deep-dive into a 27-unit, three-building portfolio in Cobalt, Ontario, spotlighting a rare investment opportunity in a town undergoing economic revival.

The centerpiece of the discussion is the town’s strategic importance as a cobalt mining hub, now revitalized by a $25 million USD capital injection—$20 million from the U.S. military and an additional $5 million from the Canadian government.

This funding aims to reestablish North American cobalt production amid rising demand for electric vehicle batteries and reduced reliance on ethically questionable foreign sources.

The hosts discuss the implications of investing in a "one-trick pony" mining town, acknowledging the inherent risks but highlighting how dramatically low acquisition costs—just $35K per unit—paired with a full BRRRR strategy (Buy, Renovate, Rent, Refinance, Repeat) create a powerful upside scenario.

The buildings, recently upgraded with over $750K in capital expenditures, still offer room for further renovation and rent optimization, with projected cash-on-cash returns and a refinance-based capital recycle that could leave investors with nearly zero money left in the deal and $27K in annual cash flow.

They also touch on current market dynamics—uncertainty, pricing pressure, and how only the most compelling deals are selling—as well as the importance of strategic pricing and investor discipline in today’s climate.

With population in Cobalt projected to rebound due to the mining resurgence, this deal is pitched as a calculated bet on a town at the leading edge of a commodity-fueled comeback.

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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/

E133 From Forgotten Town to Investment Goldmine?

02:00 U.S. Military & Canadian Government Invest $25M USD

04:59 Only Compelling Deals Are Selling

07:49 Deal Overview: 27 Units for $950K

10:20 Modelling the BRRRR Strategy

14:00 Projected Returns & Cash Flow

16:56 Cobalt’s History & Future Outlook

19:15 Deal-in-a-Box Approach

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.