Small Multifamily in Connecticut

14 Replies

My husband and I are looking to buy our first rental, ideally a small multifamily. We'd like to keep the price around 150K. Some areas we have considered have been Bridgeport, Bristol, New Britain, Manchester, Meriden, and East Hartford. Has anyone had experience in a few of these areas that could offer some comparison? Thanks!

Hey Christina,

The first steps I would recommend as a new investor is to get a handle on analyzing the income, expenses and ROI of these properties in Bridgeport CT. Connecticut in general is in a sellers market. You will need to be creative in negotiating to get the price / terms you need.

You can use the Bigger Pockets calculators to start. Right now rents are strong, you can get $800 for a 1 bed, $1100 for 2 bed, and up to $1300 for a 3 bedroom. Use Zillow and to get data and analyze a few from your home to see what type if returns there are.

If these meet your investment criteria then start looking in person by contacting the listing agent.

Let me know if you have any questions.

-Craig Bellot

@Christina Varvatsis , welcome to BP.  I invest in small multis in Shelton.  150K is going to be a tough price point but start networking and searching.  One thing you will find when looking in the city areas (where you will find properties closer to your price point) is that the taxes are extremely high.  Bridgeport, Hartford, New Haven, Waterbury have very high property taxes.

Good luck and let me know if I can assist in any way.

@Christina Varvatsis Hey Christina, like others have said 150k does not get you much in this market anymore unfortunately even in town like New Britain, Bristol ect. If that is your max budget I would start building teams and systems to find off market properties. Drive for dollars, knock on doors, send flyers, cold call ect. 

If you do find an on market property for 150k, triple check its not in a war zone. If you ever need help navigating the market/streets in Hartford county particularly new Britain, Bristol, Manchester, Middletown, let me know!

@Christina Varvatsis , I grew up in Shelton.  I am in the military so I haven't been back since college, but property taxes are low and rents are good in Shelton.  The market is crazy hot right now so you need to be really patient.  I picked up a second four-family there 18 months ago and have continued to look since, haven't found anything meeting my criteria.

@Kevin Hunter , are you investing in PA as well? My wife grew up in Boiling Springs and her dad has owned a few rentals inthe area, so I keep an eye on that market. I think there's a lot to like between the state jobs in Harrisburg, the college, military installations, and ever-expanding warehouse/logistics jobs.

Hi @Christina Varvatsis ! Welcome to BP. Below is the list @Jaysen Medhurst mentioned. 

This is just an opinion and some of what I have observed during my time. This is by no means an attempt to push anyone into any market, but rather just some generally vague thoughts.

Windsor is a great "small town" that generates good cashflow with moderate chances of appreciation (relative to the CT Market)

Granby even a smaller town feel than Windsor, rentals are in high demand and rent prices are high. Expect high prices too, though. Appreciation likely.

Enfield is better on cashflow, but has some rough parts of town that I personally avoid (Specifically T'ville). It does have a busy shopping area, and a mall that desperately needs attention. The proximity to MA is a benefit.

Manchester strong rents, but getting into the market can be tough, as multis are priced accordingly.

West Hartford if you're in this town you're probably banking on appreciation, not cashflow.

Glastonbury Strong rents, but expensive. Multis / rentals are not common, and in demand. Appreciation likely.

East Hartford Mostly a B/C class community. I like it. Rents are strong, proximity to downtown Hartford is a major plus. Prices have gone up steadily since 2015/2016.

New Britain
Still has quite a negative stigma, mostly due to crime. I hear it all the time when I'm showing tenants units in other towns and I get asked "Do you have any other units available." You can see the expressions if you say "Yes we have one in New Britain." We manage in town, but I don't feel comfortable enough to purchase in NB myself. That being said, prices can be attractive.

Bristol Strong rental market. Seems to always have demand given proximity to Hartford, Waterbury and Meriden.

3-4 years ago 150K was a pretty decent C+/B- 3 unit in East Hartford. These days that sam property is north of 200K. Kind of nuts to watch what the market has done in such a short time. I bought a 4fam in EH for 200K. Probably worth close to 300 at the moment. Yikes! 

@Jaysen Medhurst , I invest every time I PCS(Move) for the military, so yes I would like to invest in PA.  In this case I will be in Carlisle and would like to find a FLIP or value add here in the city borough.  That said, I only just arrived and have to get a feel for the area and start networking. If you know any investor-friendly realtor, PMs, GCs, I would appreciate the references....

@Filipe Pereira

Thanks so much for the info. We are certainly open to increasing our price point, but would probably be looking to buy around March/April of next year in that case. We were thinking it might not be a bad idea, regardless, to see what the market does over the winter. Interested to see what happens with COVID this fall/winter and if that has any effect.