Closed 3rd multifamily deal in Connecticut

19 Replies

I’m excited to share the closing on our 3rd multifamily deal. When I say “our” I’m referring to my company and the team I have been able to build over the last 12 months. I still consider myself a newbie and with much more to learn along the way. However, my business background and sales experience have taught me to strategize towards the business we aspire to become in the future.

We acquired an REO Triplex in Meriden, Connecticut. The neighborhood is what some would consider and B- or C+ neighborhood. After negotiating the price, we purchased the property for $92,500. The rehab budget including a 20% reserve is $25,000.00. We got a conventional loan at 4.75% including the rehab loan with 25% down. The property taxes are $3,727, and insurance is $1,854. We started the renovation 2 weeks ago and expect to have the apartments ready for rent within 30 days.

Our analysis on the property forecasts a 28.9% Cash on Cash ROI and an annual cash flow of $11,274.00. I look forward to sharing more success stories about this property, and some others we are looking at in our pipeline.

Congrats Jose! Keep working it. 

Congrats @Jose Bernard , if you need any advice on contractors shoot me a message, I'm local.  Post some pics when your done.

Thank you @Mat O'Grady . @Sal Morello thank you I appreciate it, I'm always looking to network with more contractors that I can work with as we scale up and get into more projects. @Mario Bellavia thanks, glad to see other local investors here. 

Hi @Jose Bernard ! Great job on this. Can I ask what lender you used and how you got that low of financing for an investment property? Are you house hacking?

Good work @Jose Bernard  

Are you planning on refinancing after the rehab is done to pull some of the equity out?

Congratulations Jose!

@Stu Basham I used Prime Lending. I work with a local office here in CT for the last 2 years, and they have been pretty good. I'm not house hacking the property.  @Michael Noto yes, that's my plan after 12 months to try to either refinance or look at a HELOC.

Congrats @Jose Bernard ! Sounds like a good deal and great plan. Look forward to seeing more of your success in the future

@Jose Bernard Do I know now who is the competition in the area sneaking all the MFR deals xD

Jk, big congrats, numbers look good and I like Meriden for that exact reason. 

@Jose Bernard where in Meriden is the house? There are some bad areas in town, but this sounds like you are in a better one (being a B-).

@Alex Dem haha I'm a small fish  in the pond no worries lol.  @Brian Pulaski the property is on the west side of Meriden, is not the best part of Meriden but is a decent enough neighborhood.  

Off West Main St? If it is far west, or south west not bad. If it's more toward the center of town, that's a rougher area. I had family on Windsor Ave (one of the more questionable areas). Meriden is going through a revitalization of sorts and I know a few people in town who won't live anywhere else! Wish I was back there now looking for deals!

Pictures from the current rehab from this property.

New Roof in, almost done with the rehab. Will post final pictures in a few days. 

@Jose Bernard Great job, did you find tenants yet?  What is the rent range per unit?

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