Good Deal? Located in Western CT

2 Replies

Hi everyone, I would like some advice on a deal. I am 23 years old and I have been holding off my first investment property, but I think now is the time to jump in.The property I am looking at is located in CT, priced at $229,900.It is a 3 bedroom townhome. My plan is to live in it for a year with two others. While living there, I would "rent" it from myself. Then rent it out to others, seeing it's in good proximity to a hospital, to travel nurses or small families. The estimated monthly payment is $1828/mo. (I have attached the zillow estimation). My plan is to use an FHA loan at 3.5%. Assuming a 1.5% of the purchase price for closing costs, my total at closing is $11,494. I am doing a 30 year fixed, assuming a rate of 3.235%. (I am also going to run this through the BP calculator, I am having some loading issues at the moment. I will also be reviewing my rental investing book by BT)Is this a good first investment property? If not, what would make this deal more profitable? Thank you

Jamila,

I am sure you living there with two others in the first year would be a smart move by lowering your housing expenses. The bigger question is how will it cashflow once you leave after a year? Are you planning to rent it to one tenant or rent by the room at that point?

@Jamila Thompson

You are off to a great state. I also purchased my first property at 23! 

I think we need some more information here to know just how good / bad a deal this is. How much will the property generate each month in terms of gross rent? Depending on where it is (western CT varies a LOT from the hills to Greenwich), this could be a steal, or way over priced. I'd want the gross rents to be around 3K based on the current CT market. That would be 1.3% or so based on the "1% rule of thumb".