Hello, I am looking to buy my first rental

Hartford, Connecticut
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Hello, I am looking to buy my first rental

Travis Troop
Member since 2019 · 7 posts · 2 votes

Hello, My wife and I have 30k saved and lot of equity to pull from. We are looking to get our first rental. we are looking at a multifamily rental in the south eastern area of CT or one in the Venice area of Florida. Really what ever looks the best in the calculators. 

How do you search these forums? I would really like to find a solid way to predict vacancy rates.

Thank you,

Travis

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  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    3y

    @Travis Troop

    I don't think I follow your question - you want to know how to factor vacancy in to your expense calculations?

    I'd stay local so you can be hands-on.

    0Reply
  • Travis Troop
    OP
    Member since 2019 · 7 posts · 2 votes
    3y
    Quote from @Nicholas L.:

    @Travis Troop

    I don't think I follow your question - you want to know how to factor vacancy in to your expense calculations?

    I'd stay local so you can be hands-on.


     Hi, Thank you for the reply, from what I understand "they" to use 3-5% for vacancy rates. But do those change with short, mid and long term rentals? 

    When you find a new area to invent in how do you come up with a vacancy rate tailored to that area?

    0Reply
  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    3y
    Quote from @Travis Troop:

    Hello, My wife and I have 30k saved and lot of equity to pull from. We are looking to get our first rental. we are looking at a multifamily rental in the south eastern area of CT or one in the Venice area of Florida. Really what ever looks the best in the calculators. 

    How do you search these forums? I would really like to find a solid way to predict vacancy rates.

    Thank you,

    Travis


     IF you are lucky you will get 3- 4% net in those areas. Also FL is way overpriced. There are other markets you can get 10% or better, 

    Good luck 

    0Reply
  • Sloane Kraftsow
    Lender · New York, NY · Member since 2023 · 749 posts · 510 votes
    3y

    Welcome to the group! Also, congrats on starting your real estate journey.

    0Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    3y

    @Travis Troop

    Well, I invest primarily in one area, although I do have rentals in other states (including a condo in CT.)  I have been able to reduce vacancy by having high quality rentals in good neighborhoods.  For example, I've had 0 days of vacancy on that condo in 5 years of ownership.

    And yes, vacancy for LTR, MTR and STR is different. I only have LTRs.

    But vacancy isn't a huge deal which is why I'm curious why you're so focused on it.

    0Reply
  • Alex Giassa
    Real Estate Agent · Member since 2019 · 15 posts · 4 votes
    3y

    Hey Travis, I agree with @Nicholas L., for your first go at it, stay local as you can. 

    0Reply
  • Travis Troop
    OP
    Member since 2019 · 7 posts · 2 votes
    3y

    So stay local even if the coc is only 3%? 

    0Reply
  • Zach Edelman
    Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes
    3y

    Welcome to BP, Travis. Lots of good REI opportunities in SE CT.

    0Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    3y

    @Travis Troop

    yep - stay local, and figure out how to get a better return than that.

    go to REIAs, network, try to find something off-market, look at 50 or 100 properties.

    i wanted to buy something on seller finance and it took me 3 years to find my first seller finance deal.  but i found it.

    you have to put the work in.

    0Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    3y

    @Travis Troop

    Start where you can afford and that you can handle.

    Vacancy is market specific.

    In most market, it's between 6 - 8% annual vacancy.

    Goodluck

    [email protected]832-776-9582Podcast Guest on Show #469
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    0Reply
  • Devin PetersonBusiness Member
    Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 664 votes
    2y
    Quote from @Travis Troop:

    Hello, My wife and I have 30k saved and lot of equity to pull from. We are looking to get our first rental. we are looking at a multifamily rental in the south eastern area of CT or one in the Venice area of Florida. Really what ever looks the best in the calculators. 

    How do you search these forums? I would really like to find a solid way to predict vacancy rates.

    Thank you,

    Travis


     Hi Travis, Local to you in Middletown! Happy to connect and talk strategy, etc. It would be great to learn more about you!

    [email protected]860-538-3672
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    0Reply
  • Samarth Patel
    Rental Property Investor · Windsor, CT · Member since 2016 · 12 posts · 10 votes
    2y

    I stayed in Venice Florida for 2 months. Definitely market there for short term rentals and travel nurses due the hospitals in the area.

    0Reply
  • Robin Searle
    Real Estate Agent · Colorado Springs, CO · Member since 2017 · 224 posts · 201 votes
    2y

    @Travis Troop I have a home in Venice and I’d urge you to look at insurance rates! My insurance costs are skyrocketing and I’m not even in a flood zone. A lot of companies are pulling out of the state. Also be aware Sarasota County, which includes Venice, has a 30 day minimum for rentals so you are limited to medium and long term rentals. I absolutely love the area but I think buying at todays prices would make it difficult to be profitable.

    0Reply
  • John Mocker
    Insurance Agent · Norwalk, CT · Member since 2016 · 2k+ posts · 1k+ votes
    2y

    Travis,

    A couple of things that you should consider from an insurance perspective:

    1. Rates

    2. Availability of coverage.

    FL's insurance market is in turmoil.  Most Standard carriers either pulled out or stopped writing new business.  Also, there are restrictions on the age of a roof for the companies that do write there.  CT on the other hand is a more stable market.  We are seeing increases in CT but much more reasonable.

    There is a big meetup in Derby CT (Badsons Brewery) on Wed. 10/11/23.  The persons running other Meetups in CT were invited to make a forum.   The cost is minimal ($5).   

    0Reply
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