Investor · St. Johns, FL · Member since 2016 · 13 posts · 2 votes
Hi all,
Quickly want to say thank you to everyone who is contributing to the discussions, the information is invaluable. I’ve searched a bit in the forums, but haven’t found an answer to my specific question and was hoping someone would be able to provide some assistance. I am interesting in purchasing a multi-family (probably a duplex) in Fairfield county, CT or Westchester county, NY. I intend on occupying one of the residences for a year or two, but cannot seem to make the numbers work… am I missing something? I’ve also thought about purchasing a single family and just converting it into a multi-family. Any thoughts?
have you considered a 3 our 4 family home? I purchased my first 3-family about a year ago, and having the third unit is the reason my numbers work. I had the same trouble originally that you are having now when I was considering duplex's, pending you are occupying one unit. Managing one unit vs. Two has not been an issue for me because either way you are being a landlord. Just make sure you do a good job on the front end on vetting new tenants and it will save you headaches later.
have you considered a 3 our 4 family home? I purchased my first 3-family about a year ago, and having the third unit is the reason my numbers work. I had the same trouble originally that you are having now when I was considering duplex's, pending you are occupying one unit. Managing one unit vs. Two has not been an issue for me because either way you are being a landlord. Just make sure you do a good job on the front end on vetting new tenants and it will save you headaches later.
@Joseph D., I agree with Ryan above. I can only speak to Fairfield County because I invest there, but the numbers are very tight on duplexes. You have to look for an absolute steal or go tri or quad plex. I have a four family and the cash flow is great.
How are you financing? Conventional, FHA, VA? Are you doing your numbers with rental amounts you'd be getting if you weren't living in 1 unit?
With that being said, as far as Westchester goes, you have some of the most expensive taxes in the country that make it difficult to cashflow. A 3 or 4 unit, like the others mentioned above, can be a better option.
The numbers scale so much better in Fairfield the more units you have. I would not go below 4 units.
Westchester and NYC are appreciation plays mostly. Cashflow will be tight but you'll make out like a bandit after 5 years of appreciation as long as you can hold it.
@Joseph D. welcome to BP. @Craig Bellot makes some really good points. If your interest is a duplex in Fairfield county best bet would be to find one that needs a little work. Turn key duplexes that cash flow from the get go are difficult to come by around here.
Joseph D. Fairfield county is a great spot for a long term play. As others have stated, finding a "value add" opportunity makes the best sense. You will need an agent who is hungry enough to help you with creative solutions to the "inventory problem in this area." Chris Reid is a great resource and might be able to help you!! Sorry Chris if you are not looking to help, but I know how darn smart and motivated you are :-)
All, thanks for all the input, I really appreciate it. @Ryan Latella, I'm going to expand my search to 3 and 4 family homes. @Ceasar Rosas, I am using a VA loan. @Craig Bellot, I'll expand my search to Fairfeld, thanks. @Christopher Reid, thanks for the welcome, and thanks for the info, I may reach out to you once I am able to have an intelligent discussion about this stuff..Definitely a newbie. Thanks again everyone, really gave me some options to consider. Thanks for the solid advice!