I just found a deal in Waterbury, Connecticut. Two townhouses FSBO. Initial research off pro forma shows an 8.2% cap rate. I'm intriqued and want to now dig deeper. I know NOTHING about Waterbury, Connecticut. I'm 90 minutes away in NYC. The owner has said that the two units after this year won't have any taxes to pay because they have been put on a historical preservation list. Could this be possible? I've been doing some research an noticed an economic plan for a huge revitalization that is taking place in the town but then I also found a article that this revitalization has stalled due to lack of funding. I am open to "long distance" investing if the numbers work but want to know if there is anyone out there in BP nation familiar with Waterbury and its REI that can offer any bits of advice? Thanks.
Waterbury is a very challenging market and is very much a neighborhood by neighborhood type of city. Some parts good. Some horrible.
I would recommend getting some people on the ground, either a realtor or advisor to guide you through this transaction. A lot of out of town investors have taken a complete bath in Waterbury.
Thanks for such a fast reply. The more reconnaissance I can do from NYC the less time I will waste on this particular deal. The owner did say that a lot of investors from NYC were picking up properties in the area. Obviously, he didn't mention them taking baths:). Thanks again.
I invest in Waterbury ct, and I am there 5+ days a week. if you would like to talk or would like me to look at the property let me know.
I was living there for the last few months, some areas are very nice but very few and far between. I live close by though so if you need someone to go and see the place in person don't hesitate to ask. I'm new to REI so the experience helps. I can have videos and pics along with video of the surrounding neighborhood.
@Michael Tranzilli I think you have to think about what to do with the property first. Do you want to flip it, rent it out or what? If you want to flip it maybe after rehabbing, then the revitalization may be less significant. However, if you are going to hold it for long term rental or appreciation, then you have to make sure what is happening about the revitalization.
Thanks for response. This would definitely be a long term buy and hold.
Thanks for offer. That is very kind. I'll get in touch as I proceed further.
For long-term buy and hold, I think you would have to calculate how much value will bring from the revitalization project to the property. Maybe it can increase the rent in that area or increase the price of the property itself in the next few years. Then you can buy the property at a reasonable price for you to make a profit. So even if the revitalization project stalls, you can make something. Hope that's going to help.
It does help. Thank you. I LOVE THIS WEBSITE! Where else can you get your questions answered in such an intelligent, timely manner? Excellent.
I have some family in Watertown - nearby Waterbury. As some people have mentioned it is really a case by case basis.
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