I am interested in investing in a multifamily in the Norwich area. I am wondering if its a mistake to A: select a town with such high taxes, and B: selecting a duplex instead of saving a bit more and purchasing a three family. Any advice would be appreciated as this would be my first attempt
@Jason Calouro Do you live in Norwich now? Do you like where the property is? Do the numbers fit your needs?
I stay away from Norwich partially because I like to invest in places that are on my way to work and partially because I hear it can be harder to find good tenants. There are definitely people investing there and making money.
As far as the number units, I try to get as many as I can under one roof, but the current market is definitely making it tough to find good deals. If you find a deal you are happy with, it may be better to just get the first one under your belt.
@Jason Calouro I think the answer to both parts of your question is “it depends”. If the numbers work, pull the trigger. Taxes are just an expense like any other. If the condition, and rents cover expenses with an acceptable return on your investment, it doesn’t really matter if the taxes are 2500 or 6500. Same with unit count. A 3 unit of 1 bed apartment will gross the same as a duplex with 3 or 4 bed units. I wouldn’t get hung up on the tax amount or the unit count as an end all be all for your search criteria. Every property is different. Welcome to the wild world of norwich real estate investing. Screen ‘em well and you’ll do fine.
@Kyle Campbell that makes sense thank you
@Mat O'Grady thank you