In Episode 152 of the REI Hot Seat, Dave and Jacob are breaking down an active mixed-use deal in Scarborough on Eglinton that brings something a little different to the table. This is a freehold strip-plaza unit (not condo), fully vacant, with roughly 1,000 sq ft per floor: a 3-bedroom residential unit upstairs and 2,000 sq ft of commercial across the main and lower levels. The flexibility here is key — live/work, lease everything, or reposition it entirely.

We model the numbers conservatively: $2,500/month for the 3-bed, $5,500/month for the commercial, plus a third income stream most people overlook — an on-site billboard generating approximately $11,000/year. With separately metered utilities and light expenses, the deal pencils around a 6% cap at asking, and we walk through financing assumptions, DSCR targets, and what realistic mixed-use lending looks like without CMHC.

The real upside? Value-add. Nearly every neighbouring unit has expanded at the rear, significantly increasing square footage. There’s strong precedent for additions, opening the door to expanding commercial space or potentially reconfiguring residential density (subject to permits and planning). It’s priced based on what it is today, the expansion is optional upside.

If you’re looking to diversify beyond straight multifamily and want exposure to retail with residential stability and contract-law protection, this is one worth understanding. Reach out if you want the full underwriting breakdown.

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EP 152 Unlock Passive Income: The Secret Power of Billboards!

00:00 Intro + why this episode is different
00:35 The property overview (Scarborough mixed-use, fully vacant)
02:40 Layout, floorplans, and renovation/capex notes
04:30 Underwriting rents + why conservative
07:15 Billboard income breakdown (how it works + why it matters)
09:20 Expenses, NOI, and vacancy assumptions
10:45 Financing + DSCR targets for mixed-use
12:05 Cap rate & cash-on-cash scenarios (ask vs offer)
15:55 The value-add play (rear additions + precedent)
19:00 VTB conversation + leasing support for the commercial space
22:15 Wrap-up + how to learn more

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.