Investor · Yonkers, NY · Member since 2014 · 84 posts · 20 votes
I really don't want to give up on my farm area here in Yonkers NY. Which I'm going out tonight to put out my bandit signs. But tonight I had a hour long conversation with my finance guy and he tried to explain the map of investing in a 60K-70K sfr putting in 20k-30k into it and selling it for 150k. To make money and then buy and hold multi family houses up in Waterbury. He was telling me the key is to work with a real estate agent that really knows how to find deals with equity. Who he knows and will introduce me to next week. And the whole tax burden that I would have in NY I won't have to worry about it in CT. Just wanted to write a post to see if anyone is investing in CT and how it's going for them.
a pour of people don't want to incest in Waterbury first a few reasons and one of the biggest reasons is the mill rate. They have one of the highest in Connecticut. That being said, rents are usually 650-850 a unit and I just talked to an appraiser earlier this week that told me 4 families in the nicer areas are selling around 225 to 235k. He called me wondering how many client got his for 195k. Like with any city, the more you move into the "less desirable"areas the better the return on investment.
There was one neighborhood I did a cma for and 4 families sell for about 110k.
a pour of people don't want to incest in Waterbury first a few reasons and one of the biggest reasons is the mill rate. They have one of the highest in Connecticut. That being said, rents are usually 650-850 a unit and I just talked to an appraiser earlier this week that told me 4 families in the nicer areas are selling around 225 to 235k. He called me wondering how many client got his for 195k. Like with any city, the more you move into the "less desirable"areas the better the return on investment.
There was one neighborhood I did a cma for and 4 families sell for about 110k.
Hi @Tyrone Watler, as a CT investor, I agree with @Jason Arcuri. Waterbury is tough to make the numbers work due to the property taxes (mill rate). The area has a high demand for civic services and the taxes continue to be a burden. It's not impossible of course and like Jason said with greater risk can come greater reward. But keep in mind, as I'm sure you know in Yonkers, in Waterbury you should be extra diligent in screening tenants. I'm wondering, why Waterbury? Was it just the availability of Multi-family properties? There are many other solid areas of CT.
thank you everyone for your feedback. I never really wanted to invest in CT just one of my mortgage brokers called me and told me about Westbury and he has been closing on a lot of investment properties there. I don't want to get off my focus on getting my first deal so I wanted to get a gage of the Westbury CT market and with you guys giving me this great feedback, I'll stay on the track of continuing looking for my first wholesale deal in Westchester county
I have found good deals here in CT but unfortunately one of my bad experiences was in Waterbury. I had a big lost but I was also new and was not educated in real estate investing. With the experience I have now I would not mind doing Waterbury but from what I've seen houses here tend to stay posted on the mls for long periods of time. Which is why also you can get great deals. I would rather buy and hold. Most likely buy it cheap fix it and refinance ( Brrr) and do it all over again. I would also recommend to have an experience property manager. No manager, no deal.
Jason Arcuri thanks for the info and quick reply. Is there an average price range for single family/condo in Waterbury? Not familiar with those other towns but will research them. Appreciate the help
Waterbury spreads all over. Depends on where you are. Personally not a fan of renting out single families so I don't really payattention to that part of the market where it market. My clients usually are buying houses for themselves there or are buying multi families there.
Hey there @Ryan McCann, right now for multifamily I'm focusing on New Haven, Danbury, & New Milford areas. Very Different areas I know but they each have their strengths. I think the possibilities for SF buy and hold in Western CT is in the Danbury Area. That's vague I know but in Danbury (and others close by) the taxes work, rents are saying high, and we're seeing prices being pushed lower by the fact that there is a large demographic needing to move on to the next stage in their lives, their homes haven't been updated since the 80s and of course more inventory than buyers. Put this together with the "fact" it takes 2 incomes to afford CT and the millennial family predominantly wants to spend their time and money traveling and experiencing rather than at home nesting. So, if you can make the numbers work to offer the rental with lawn care or snow removal included then you're really in a great spot. I know this is all very general. If you'd like to talk more specific, give me a shout. Always happy to talk REI.
@Rafael Martinez how did that go? I am a REALTOR in the area and just closed a 3 Multi fam deal in Waterbury for a client of mine. I grew up in CT and I am slowly learning about the investment life myself so I can either buy here or elsewhere. Congrats!!
I have been looking into the Waterbury area for multi-family for quite some time. They seem to be in the below average rental grade but they also look to be great cash flow machines. I constantly see deals for 10-12% cap rates and some 20%+ cash on cash ROI. Makes me want to jump in but I don't know the area and it seems too good to be true. Wondering if anyone else has any info to share.
@Patrick McDevitt I think if your seeing numbers with that much COC ROI you should check it out. Are you investing from out of state? I know Waterbury really well and it's based off the area and how well you screen your perspective tenant. What areas are you looking into?
Hi everyone! I recently entered a contract for a mixed-use property in Waterbury. The number looks great (about 13% cap and 25% COC) but I am having cold feet now considering the great risks getting into an illiquid market in C neighborhood with high turnover rate of the tenants. Would love to share the details with more experienced investors and bounce ideas around (I am a newbie). Thanks!
I am seeing average asking price $150k to $180, but most of these are older houses and the rents for a 3 unit is grossing $21k to $24k. I am thinking that they will need some additional investments in short order.
I am looking at New Britain and Manchester as well. It’s still difficult finding Investor friendly agents to work with in these areas. Most of the agents are in the retail market which is very different as all know.
I live in the New Britain area and I am currently in the process of transferring my RE license from FL to CT. I can tell you buying in those areas are not totally bad as long as you understand what you are investing in. Manny houses are old and have so much deferred maintenance & job growth is obsolete, but the Cap rates and prices are great but you will truly haveto purchase with the long game in mind. You can buy at 11%-12% cap all day but getting that 8%-9% cap exit will take time.
@Tyrone Watler i am investing in new britain. it’s an incredible place for rentals. i have had much success over the last 7 years there. furthermore, there is a lot of excellent improvements going into that town thanks to the current Mayor. highly recommend.
@Neo G. Wang Hey, I currently owned a few properties in Waterbury and so far it’s going really well. Did you end up continuing with deal or did you pull out?
@Nicholas Greene Hey it has worked out really well so far. It’s all about running your numbers, understanding the area and getting the right tenants in the properties. I’m working on my 4th property in Waterbury. Did you invest or do you have any deals? Let’s connect.
I am not physically there but I made a trip this past weekend to check it out and got a lay of the land. It has potential but obviously would require a team on the ground. I am still looking to source the right team to get things started. Will accept any connections or recommendations.
I'm looking to buy a 3 or 4 unit building in Waterbury within the year and another in Q2 of 2020 if possible. Anyone here have good recommendations on lenders or property managers?