Waterbury, CT - multi-family cap rates

[Elio Campiolo Jr]

Hey all,

I'm new to REI and new to BP as well. I've been doing my share of research and i know this may be a question that is too broad, but here it goes...

I've been looking at some properties in Waterbury, CT and I'd like to know if there's anyone out there who's currently investing in Waterbury. And if so, what cap rate is acceptable for the area?

Thanks in advance!

[Chris Field]

I was not satisfied with the existing inventory so I built my own, but I operate in a very specific niche.

Generally first you need to identify an area that people generally want to live, which in CT means they are a bit more expensive. Not necessarily Fairfield county prices but not  warzone pricing either. If you invest in an area people live because they want to, not because they have to you will get a better tenant. Better tenants mean lower turn over and generally less BS which costs you money and reduces profits. The old adage you get what you pay for very much applies to multifamily housing. 

New Haven for example has some excellent streets near Yale that are very desirable, Startford has some great areas. Bridgeport has very high taxes which must be factored in. Plenty of areas, pick one you like and learn it.

Once you identify an area, now you have to do the hard work part, turn up a deal.