Hi im a new investor looking to get into the multifamily rental cashoflow game. Im wondering which parts of the state offer the best cashflow in relation to price, taxes, clients, etc.
I live in New Britain and am a firefighter in New Haven.
Hi Mark, I am not familiar with the entire state- but there are great cash flow opportunities all along the metro north corridor. Specifically I like certain communities in Bridgeport (north end and black rock).
@Mark Bascetta In my opinion, New Britain is the best market to invest in for cash flowing rental properties in CT. I have a few rentals. I am happy to help if you would like.
@Ryan Deasy you live in Texas and invest in New Britain CT?
@Victor Steffen what do you think about New Haven?
New Haven is home to Yale which boasts one of the largest endowments of any university in the country. It's safe to say they are there to stay and will continue to be a positive force on the community. If you can buy on the edge of campus and let Yale "come to you" I think it's a great buy/hold market.
@Mark Bascetta sorry, just saw this. i grew up in CT and just moved to texas 2 years ago. i live in houston. to be totally honest, i like the numbers in new britain better than houston. however, houston is exploding with growth and CT is not. as you can imagine, the massive growth down here does not yield cheap properties. i’ve had success in CT and plan to continue that.
I think another area that gets overlooked is Manchester. I think the city is very close to Hartford and could be a good opportunity for those professionals to work in Hartford. Also i personally think the area is nicer and safer than Hartford.
I loved New Haven for years but the prices are getting way to high for a good return.
Right now I'm living New Britain, Meriden, and waterbury (waterbury is a lot tougher but the prices are still very attractive.
For my first time buyers I recommend meriden over new Britain but they aren't too different overall.
Dude, its about the numbers. Every investor will give you their favorite city. If you keep asking eventually you will get every city in CT.
I would say don't limit yourself to a location. I go wherever there is a deal period!
I bought a house in waterbury in a crappy location ... section 8 will pay 1000-1300 a month. I bought the house for 5K.
Hard to go wrong.
Screw location, just feel every deal out independently and run the numbers!
I have to agree with @Jerryll Noorden
There are great deals to be found in every city. Some cities/towns have better mill rates than others, but in terms of price & clients (I suppose you're referring to "tenants"), there are underpriced/overpriced properties and good/bad tenants everywhere.
Based on the information that you've provided, I'd recommend for you to get pre-approved for a mortgage then start looking for properties between New Britan and New Haven. Look at 2-4 unit properties and analyze them using the BP calculators to determine a good price to offer. Once you find a property that you're interested in, do your due diligence by analyzing the neighborhood that the property is in to see if you're comfortable managing a property there.
Remember that great deals are not always seen with the eyes, they're seen with the mind. In other words, you'll often have to look past the pictures & price and figure out how to make the deal work for you.
I hope that helps! I'm local, so if you'd like to talk in further detail, feel free to inbox me.
@Mark Bascetta It also depends on what is your target tenants? Bridgeport is good for section 8 tenants however cities that are surrounded by immigrants are great for regular tenants. I recommend you to check the per capita income of the cities as well. As @Jerryll Noorden said in the end it is all about the numbers.
I come at this from a strange angle. I have concerns about CT because the tax base is constricting and the state’s finances aren’t in a great place. For that reason I would buy near colleges as I assume these will be less impacted by the state’s problems.
Having said that, I looked in CT and eventually decided to purchase out of state so take my advice with a grain of salt. Others’ advice likely more meaningful.
Is anyone investing in 5+ unity multi's?
I've found a few posts about CT muliti's, but seems a lot of people invest in 2-4 units.
Everyone will provide you advice of their own, but at the end... what you must ask yourself.. is...
Do i have a full time job or not?
That's question #1
Can I do this part time?
Yes or No
That's the 2nd question...
Answer these first 2 questions then proceed with creating long term pivotal strategy, with sprinkles of the short term strategy in between.
Geo factor is great, but in certain cases, out of area investment in real estate is a lot better, less stress where you do not even have to be the landlord and invest passively.
Being landlord, is great for some, but not for others. Fix and Flip sounds great, too much work, although if the deal makes sense why not. Waterbury cash flows well, appreciation not so great. Compare that to NJ Elizabeth and fly like a bird in appreciation, and cash flow.
Taxes in CT high and cap sense near metropolitan areas don't make sense. Yet don't look at cap rates only, look at upside value potential, that is if of course if your strategy is fix it up, hold it up, refinance the beast then sell.
I am not in position to provide any advice in real estate investments (since i didn't succeed yet, but i can provide my freedom goal and my point of view).
I am sure many folks in this group can provide a heck of lot better real estate investment advice than me. However, try to answer the first 2 questions that I asked you first, the see which strategy would fit the most for a particular deal that come across..
Also when it comes to 5 unit houses or anything like that... well... it's just i feel there is a lot of headaches with 5 units, unless it makes conservative underwriting sense.
Don't spend too much time thinking what make sense vs not... while you do that other real estate investors grabbing deals, yet be like a bird, free like a bird with your mind... and drive your exit strategy to that freedom..
Team up with real estate investors, wholesalers and boom, boom, boom makers. Follow them, read their articles, and yes... avoid having to deal with sophisticated real estate investors for any additional capital if you are thinking of investing together.
Multi family houses in CT area such as Stamford are basically non existent in terms of any conservative underwriting sense. Norwalk is great, it's expanding, with the new mall, yet the properties are expensive and don't make cap rate sense and even if you add value in many cases.. unless you find it under market.
Follow the boom boom boom getters to see how to get it under market cheap and you will find something or dive outside of the box, and go for out of state deals. Navigate your way freedom path with desire to help others while helping your self in context of looking for your investment opportunity.
Leverage other people ranging from real estate investors, agents, brokers, property managers and lenders in your discovery process.. Create secret pivotal hooks to pull them in your direction and look for moderate returns from investments rather than unrealistic.
If you decide to get deals to come to you, there is multiple ways of doing that.. I haven't got any deals yet.. i have a specific reason for that... however other wonderful folks did... and can chime in specifically how they do this.. Yet the first thing that comes to my mind is doing anything ranging from direct mail, probate, going through court records, searching for liens, and hunting for truth, while intermixing a bit of digital marketing here and there to get homeowners to call you, while you would help homeowners solve their problems.
The thing is though, all of this is complicated and sometimes it's important to realize something very simple... if one strategy doesn't make sense.. don't look for a deal that fits in the strategy.. instead search for deal and if the deal makes sense decide on the strategy, and if it doesn't make sense for you, but perhaps makes sense for someone else... share this info with others, and get bliss of happiness in return.
What i have noticed over the past 7 month of my real estate investment journey, of simply creating dreams, is that there are multiple subsets of people all around us.. specializing in all sorts of investments, your goal is not to fall into the trap of others.. but instead.. realize what makes sense for you interms of your financial freedom pivotal goal.
I am not an expert in providing any advice, after all who am i... i am just the guy who failed in life many times, who is trying to dive into the field of real estate investments and discover truth.
While I am discovering truth... other folks finding deals and the life goes by... Remember don't get stuck finding truth, and instead team up with people who have reasons to help you in finding a deal in CT... or dive outside of the deal that makes a lot more sense... in terms of simply being passive investor...
Whatever the maybe, remember it's not about cap rates, it's not about what city is best, it's combination of it all... and what makes it all is your pivotal mind set.
Hope my advice helps
I can only speak for Bridgeport. It's very possible to get great cash flowing multifamily properties there.
@Ryan Deasy cool points Ryan. Do you worry about crime rates in Bridgeport/New Haven? I know stats can be fudged haha but 4 of top 25 most dangerous small cities in America are in CT. Thanks for your views!!
@Silvia Camponelli thank you. yes, I do worry about crime. For right now, I am only sticking to the towns that I know well in CT. I know the good parts and bad parts of New Britain for example. I will not buy in the bad parts, unless it is a smoking hot deal; then still, maybe not. However, I was in CT last week and drove around as much as I could and some areas that I just figured were bad, really were not. If you are planning to buy in an area that you are not familiar with, I would say it is worth the time and monetary expense to take a drive, or flight, and spend some time driving around. I have also heard of people calling the local police department to ask about their opinion of a particular area before making a purchase there.
@Ryan Deasy you clearly know more about CT than i do! what are your specific worries w/ crime:
hurt house prices
how else can high-crime impact you as an owner? i'm just brainstorming hah
@Silvia Camponelli that list is pretty comprehensive list you have here. That pretty much covers it. I have had less than 5 instances where something criminally related happened at one of my properties. I think if you do your due diligence on the area enough, you should be fine.
@Silvia Camponelli soooo...quick update for you. I had a lot of my copper pipes stolen last night out of one of my properties. They smashed a window and broke in. I guess we can add this to our list. Kind of funny that just yesterday I was saying how infrequently criminally related behavior occurs in my area!
New potential investor located in Stamford, CT. Ideally, I would like to purchase my first investment property somewhere in my local market. Anyone have any success stories they can share in Fairfield County? At first glance, there doesn't seem to be too much out there and everything priced too high for any positive cash flow but this is coming from someone with an untrained eye of course. Would love to hear your thoughts. - Andres
We have one 4-family in Stamford and 4 condos in Norwalk that do pretty well. We look at ALOT of deals and very few manage to work. The market is definitely frothy out there. Don't rush it, we are long in the tooth for this cycle and most on-market deals are not going to be great cash flow right now.
Having said that, there are always opportunities for off-market deals by networking and finding distressed sellers if you want to do the leg work on foreclosures, estate sales, pre-foreclosures, direct mail, etc.
Hi @Andres Aguirre I invested in a condo at 700 Summer St in 2009, it flows about 10%. Like @Christopher Collins said, most things on the mls aren't great investments at the moment, but put the time in and you may find a diamond in the rough. @Christopher Collins where are your condos in Norwalk? I have cash, I'm looking to buy another condo (commons charges $250 and under, property taxes, $2500k and under for the year, I'm looking for $100-$130k max).
@Ryan Deasy Can you recommend a realtor in New Britain that knows the better areas to invest?