Best Connecticut town to invest in for rental income

23 Replies

For those that still invest in Connecticut, which towns are best for rental investment income?  I have heard of some ideas in speaking with several realtors, but since they have something to sell, I wanted to get the perspective of this community.  Thanks in advance for your time!

@Jaysen Medhurst - thanks for the feedback!  I lived in South Windsor for 15 years, and Shelton for about 5 years. Most of our circle of friends moved out while we lived there, and I noticed that many of my co-workers also moved to other parts of the country. That combined with companies moving out of the Hartford area and other parts of the state (GE in Fairfield), along with the migration data showing a net migration out, would make anyone nervous. Being the "land of steady habits", the political picture hasn't changed much over the years, most companies do not look to CT as a place to do business, and there aren't any recreational activities in most parts of the state. All of this being said, just curious as to why you think that it's still a good place to invest?  The numbers (cash flow) may look good, but if the property sits vacant for long periods of time, that wouldn't really make a difference.

It depends on what you are looking for.  There's a wide range in CT, from very high end to inner city slum.  If you're looking for the best rent return on investment, we're very happy with central CT.  What are you talking about, no recreational activities in CT?  We've got beautiful hiking throughout the state, access to beaches all along the eastern coast, Boston and NYC are in easy striking distance, a great airport with no traffic (Bradley), mostly wonderful schools, relatively low priced housing in much of the state, decent climate, a mostly liberal and tolerant social climate, and still plenty of corporate employers.  Oh, BTW, real estate investment is pouring out of NYC/NYS into CT as a result of the new law NYS passed allowing rent control everywhere, and tipping the scales even more heavily in favor of tenants.

@Asim Sheikh new britain is the best town for cash flow. i have some properties there. it has treated me very well for many years. happy to help. just let me know!

@Ryan Deasy - why do you believe that New Britain is the best town from a cash flow perspective, as I'm not too familiar with that area, outside of knowing that Central and Stanley are two entities located in that town?  In addition, I have also heard that there are plans for a fuel cell development, but that won't bring in jobs for at least another 20 years.

@Asim Sheikh new britain has an incredible mayor doing big things. the fuel cell is bringing jobs now. first it will be construction, then engineers, then, as i understand, a full time staff to get the plant running. it is going to be a big deal. it’s a town of basically all blue collar workers that want to rent. it has hospitals, schools and CCSU. i’ve been renting places there since 2012 and have rarely had any vacancies last more than a week or two.

@Ryan Deasy - thanks Ryan!  Obviously, even after picking your tenants wisely, have you had any security related issues?  Also, I'm sure you have "boots on the ground", given that you are now managing these properties remotely, and if so, how has that been working?

If you have some time, let's connect at some point tomorrow...thanks again!

We too are only in New Britain.  Class C multis.  Highest return on investment, less dangerous than Hartford.

@Asim Sheikh i have had very few issues. probably less than what most people have. i do have people on the ground to help me like my contractor etc. i also use my company RentReddy to assist in the management process. yes managing remotely.  i love it. it is better than being close by. it forces me to take myself out of the process and create systems. at first i was terrified. now, it is a blessing. if you want to do a call next week, just let me know! 

Bridgeport, Norwalk, Darien are great for cashflow, and in the last few years some great appreciation as well. 

Residents are fleeing from NYC higher rents to the more affordable CT suburbs along the metro north line. 

They can still work in NYC but live affordably. 

The best market for fix and flip is in a rising one.  You make your money on the increase in value of the area, as much as on the fix.  So, you got a crystal ball to predict rising values? 

Lots of good information being shared here. I'm a bit biased in my opinion, as my property management company manages Hartford County, from Bristol to Vernon up to the MA border. Here's 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. 

Happy investing everyone, and may 2020 be your best year yet!

@Ryan Deasy Just curious what's the real estate investing market like out there in Texas? I know there are different markets/area (Dallas, Houston, San Antonio, Austin, etc) that are all quite different from each other.

Live in CT, but applied to job in Dallas and at this point i am just waiting to hear back if i got the job. 

Waterbury, CT. Yes, you will have areas that people may not recommend, but you have that anywhere. Rents range $800-1200. You have opportunities with hospitals and UConn branch campus (which has bought out close buildings recently and turned to student housing) so opportunity is there. I-84 updates made traffic so much better as well. The single family median price was 75k in 2016 and is now 122k...appreciation has been nice to the town of Waterbury as of late. An investor/agent friend of mine turned a 3 bedroom into a 5BR and does Air bnb for each room at low prices and it has been pulling in thousands per month. 

Best of luck investing! These type of forums help me learn so I can make the correct moves for my first MF property. 

@Filipe Pereira , @Nicholas Greene - thanks for the information!  This is very helpful, and helps expand into areas outside of just Manchester and Vernon, which is the two towns that I was considering.  I will PM you to get some additional information in some of the other towns mentioned.

@Filipe Pereira - agreed on NB, as I have heard the same thing mentioned above from multiple agents and friends.