Rental Property Investor · Hartford, CT · Member since 2017 · 168 posts · 163 votes
Hey all,
Can anyone give me advice on the best location for cash flowing multi families in Connecticut? Specifically the greater Hartford area? Preferably a safe neighborhood... thanks!
@Heidi Kenefick we are still experiencing some great returns in CT in certain areas. You asked about Hartford area, so I will stick with that for now. New Britain, Bristol, East Hartford, Manchester, and some parts of Hartford still work. As you delve into specific areas, you will certainly want to do your due diligence and get some boots on the ground to assist you. Competition is rising, and the MFR market in CT has gotten pretty strong, with out of state investors pushing values up, and cap rates down in some cases. Reach out privately any time and I would be happy to share my experience.
@Heidi Kenefick we are still experiencing some great returns in CT in certain areas. You asked about Hartford area, so I will stick with that for now. New Britain, Bristol, East Hartford, Manchester, and some parts of Hartford still work. As you delve into specific areas, you will certainly want to do your due diligence and get some boots on the ground to assist you. Competition is rising, and the MFR market in CT has gotten pretty strong, with out of state investors pushing values up, and cap rates down in some cases. Reach out privately any time and I would be happy to share my experience.
@Rick Santasiere,
Hi Rick,
Interested in your knowlage of CT. Out of state myself, to the north. Have been eyeing the Hartford, new London market for some time now. Would love to connect.
Thanks ,
Mike
New London and Norwich have some rough spots and taxes are pretty high. But the deals are there. Just with a low grade tenant base for the most part. Sucks cause they both could be beautiful towns. I like Stonington-Westerly RI area. down side is the age of the homes.
Stay away from norwich. I don’t need any more competition bidding on these houses. Just kidding, but in all seriousness the values here are low and the rents are pretty strong. There’s opportunity to make money here but things have gotten more competitive and expensive in the past few years. It’s not as easy as it used to be. There are a few areas I wouldn’t buy in bust most aren’t as bad as some people make them out to be. If you’re ever looking at a property seriously, ask a neighbor, or a cop you see on patrol or stop by the police station and ask about the neighborhood you’re looking in.
@Mat O'Grady It takes a bit longer to find good residents than Bridgeport because of smaller population, however prices and taxes are a bit lower than in Bridgeport.
Goes without saying you just need to run your numbers to ensure you have a good deal.
Also user Trulias crime maps to ensure you're staying out of the war zones.
What does the cashflow look like? There are definitely cheaper properties, but I feel like the tenant pool is not the best. How are the utility rates? I heard the taxes and utilities are high.
Mat O'Grady All of mine are duplexes. I pay water and sewer monthly, on average it’s 200-250 per month. Taxes are a little under 300/month. All my units are 3 and 4 bedrooms and rent for 1100-1300. Tenant screening can be tough, but good tenants can be found for sure.
Exactly what others have said. There are lots of deals out there. What are you looking for? A property with a lot of upside but with a lower price or turn key property that you'll pay a premium for.
Most investors quote high taxes and utilities as a reason to not go with Norwich and New London, but as long as you do the numbers and the rents are appropriate then it shouldn't matter. Yes those higher costs eat a little into your cash flow, but these are cities with high rent populations. Unit turn around times I've found to be much shorter.
One thing i don't like about Norwich is there seems to be a "Norwich Standard". I had a couple contractors working for me that said "well, if we were in Norwich, that would be good enough..." So unfortunately there are several landlords in Norwich that lean towards the terrible slumlord version of ourselves. I personally HATE when people call me a slumlord when they hear i have rental properties. HOWEVER, there is a HUGE movement to clean up Norwich and to bring back the town. There are many landlords that take pride in there units and are doing great things. This is the primary reason I'm always looking in the area. I believe it will be coming back around and good things to come. Same with New London.