Newbie looking into househacking Multi Family in Fairfield County

Newbie looking into househacking Multi Family in Fairfield County

Princeton Jct, NJ · Member since 2017 · 25 posts · 8 votes

Hi Everyone,

My wife and I are looking to relocate (from Princeton Jct, NJ) to ease her commute.  Her office is 2 blocks from Grand Central.  We only recently moved our target to househacking a 2-4 family (initially we looked at getting a condo, really liked SoNo).  We have been looking in Westchester County, NY & Fairfield County, CT.  Her limit is 90 min train ride from GC which basically puts us at Fairfield Metro as the max.  

Westchester taxes are INSANE (even worse than notoriously high NJ taxes).  We're trying to stay sub $400k (with upwards of 20% down).  We will be putting our house up for sale shortly.  I have some folks who've expressed interest, so we may be able to sell without putting it on the market.

Since we're empty nesters with an older dog (he just turned 12 yesterday), we'd prefer to be on 1st fl for all our sakes.

My 5 yr goal is to acquire 2 MFH per year over the next 5 years.  I'm looking to connect with other investors to do joint deals.  What I bring to the table is:

* strong analytical skills

* come from a family of builders, so pretty proficient in finding the "gotchas" pretty quickly

* fairly keen sense of aesthetics & what aspiring renters prefer

* good knowledge of basic maintenance and repairs 

* 30+ years of marketing/marketing communications background

* strong negotiating skills

Would love to connect with others in the area.  We're up here looking at neighborhoods almost weekly.

I have 1 property that we're considering making an offer on, it's now almost 180 DoM, fits most of our criteria, saw some potential "gotchas" that would make it less attractive for non owner occupant investors, so not sure what I'm missing and why other's haven't tried to grab it yet.  Our current home is a "destined to be yours" home, I'm beginning to get the feeling the one we're looking at may be another example.  

Our current home was on the market in 2005 for $450k (3Br/1.5Ba ranch, full unfinished basement with Bilco doors, on 3/4 acre next to a golf course), languished & pulled off market before we had a chance to see inside.  In 2006 it came back on, there was 1 Open House (we stopped & my wife fell in love right away).  Our agent told us "no seller in this town would agree to a sellers contingency" (we'll close once we close on selling the townhouse we owned at the time).  Turns out the price dropped $50k to $400k, we negotiated down to $385k and seller accepted our contingency and countered that she wanted a firm date we would list our townhouse.  Inspection found failed septic system ($15k replacement) which seller paid for.  We put the townhouse on the market the Sunday before Thanksgiving, had showings that week and accepted deal on Fri at 5pm for 1.5% below our asking.  The impossible deal came together (though technically there was a 5 day period where we had like $200k in the bank but were technically homeless since the closing got pushed to Jan 2, 2007).

Tomorrow our agent will make an offer, we will see if "impossible deals" can repeat.

Thanks and looking forward to meeting you.

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Darren SagerPro Member
Investor · Tampa, FL · Member since 2013 · 2k+ posts · 1k+ votes
7y

@Andi Sjamsu be sure to check out the Real Estate Events and Happenings area here on BP.  There are a number of meetups of local people in that area already taking place.  May be a great way for you to find them quickly! 

Go to the area, scroll down until you see the map and put in your ZIP code and choose future events on the tab that says "Show".   

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  • Darren SagerPro Member
    Investor · Tampa, FL · Member since 2013 · 2k+ posts · 1k+ votes
    7y

    @Andi Sjamsu be sure to check out the Real Estate Events and Happenings area here on BP.  There are a number of meetups of local people in that area already taking place.  May be a great way for you to find them quickly! 

    Go to the area, scroll down until you see the map and put in your ZIP code and choose future events on the tab that says "Show".   

  • Member since 2018 · 42 posts · 31 votes
    7y

    You might be able to find some decent 2-fam in Stamford or Norwalk under $400k.  I'd recommend Stamford, simply because of the ease of commuting into the city.  

  • Scott WolfPro Member
    Lender · Boca Raton, FL · Member since 2014 · 1k+ posts · 957 votes
    7y

    @Andi Sjamsu there are some deals to be had in Upper Westchester, and Putnam County NY as well, that would keep you within the 90 min train ride.  Croton on Hudson is a 45 min direct train ride and has some good MF. Peekskill in particular seems to be having a renaissance and have some sub-400K properties.  In Putnam county there are some properties that have two single family homes on them, although they may put you just above the 90 min train ride mark.

    Best of luck!

  • Princeton Jct, NJ · Member since 2017 · 25 posts · 8 votes
    7y

    Hi everyone.

    thanks for the suggestions.  I have noted the upcoming Apr 25 meetup.

    Westchester MF are often closer to $500k and carrying costs are higher than CT due to higher taxes.

    We saw a short sale in Verplanck that MIGHT fit the need, but after much deliberation we passed since we had a harder time seeing us living that property (though the numbers were compelling).

    We are taking a very disciplined approach towards this acquisition.  Once we set the price we're ok with, we are NOT crossing that line.  We will be putting our current home on the market in the next 2 weeks, so there's no turning back.  We both agreed that no matter what, we are getting out of the current house and dropping our housing overhead.  The househack will allow us to drop that to almost ZERO or NEGATIVE out of pocket (even including BP set aside for repairs, maintenance, etc.  If we have to we are open to renting a place while we continue the hunt.

    Our first test will be today when our agent submits our offer on a home in Fairfield.  It will have a Hubbard (buyers selling their current residence) contingency along with inspection contingency.  Process in CT is different from NJ (we don't have a memo phase, go straight to offer agreement).  It is priced where the BP Rental Calcs tell us we need to be to make it work well.  It will be up to the seller to accept/counter/decline.  Agent is concerned that since there are 2 other offers, ours may not be as "strong" as other offers, but we've turned it over to HP (Higher Power/God).  This was the same when we acquired current home, agent freaked when we added Hubbard contingency (subject to us selling current residence).

    I'd love to team up with an investor that has $500k ready to roll. We'd manage the deal & offer to liquidate in 5 years (wife's retirement) so if you know of someone, I'd love to chat. FYI, the property today has cash flow of over $1000/month plus 6% COC ROI.

    Fingers crossed. 

  • Princeton Jct, NJ · Member since 2017 · 25 posts · 8 votes
    7y

    Quick update: we made an offer on Fairfield property & the offer is basically dead (at the moment), seller is refusing to drop below $360k ($5k below current ask), so I'll circle back in a few weeks to see if they've decided to finally get with the program and sell (vs getting foreclosed).

    Came across another very compelling unit, but there are already 6 offers (of which at least 1 is full ask), so not likely to be able to get that one.

    Working on getting our home on the market (we're delaying till 3rd week in May when our daughter finds out if she will be doing clinical rotations in Philly area hospitals - she's finishing up 2nd year medical school). 

    Thanks for all the advice/feedback/input.

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