New Investor Seeking Advice / Looking to Network

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New Investor Seeking Advice / Looking to Network

Mike O'Brien
New to Real Estate · CT · Member since 2019 · 11 posts · 3 votes

Hello All,

I’m looking to start my real estate investing journey and hoping to get some advice / recommendations from CT investors. I’ve been reading books and listening to podcasts for the past year and I’m ready to take action but I have so much to learn. I sold my condo in January and moved into my gf’s apartment where I am spending VERY little on rent and saving up. I work in Middletown and the options I’m contemplating are below:

  • 1) House-hack a duplex using an FHA loan so I only have to put 3.5% down. This way, I can save up to start doing flips eventually.
  • 2) Flip a single family while still renting with my gf since I'm spending so little on rent. However, with the way the market is right now, I fear the timing isn’t great. I’m wondering if anyone is having success flipping during these times?
  • 3) Buy a single-family and do a live-in flip.

I am focusing on Wallingford since there are a lot of multifamilies and property taxes are very low (I’m also pretty familiar with the town) but I’m looking for recommendations on other towns with low taxes and potential for good deals that are within 30 minutes of Middletown.

Lastly, does anyone recommend any investor-friendly agents and good CPA's? Any advice and / or recommendations would be greatly appreciated! I’m also looking to meet other local investors as I begin this journey.

Thanks.

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Filipe Pereira
Property Manager · Windsor Locks, CT · Member since 2016 · 1k+ posts · 1k+ votes
5y

Hey @Mike O'Brien, welcome to bigger pockets! 

It's great that you have your living expenses down to almost nothing. Often that's the biggest hurdle in being able to save for investing. 

With the market the way that it is, I would say option 1 or 3 are probably your best bet. In option 3 you're still banking on the market to continue to appreciate, so that does make me hesitate a bit. As to option 1, with the market being as crazy as it is, seller's aren't really inclined to take FHA offers at this time. However, this doesn't mean you can't get lucky.

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  • James McCard
    Investor · New Hartford, CT · Member since 2016 · 282 posts · 104 votes
    5y

    I have a great investor friendly agent that works in that area. Just send me a PM and I will give you there contact information. Taking the first step is important, I would echo what you are saying. I am not sure we are in a great market for flips. 

    The only other thing I will mention is that we are in a very hot market... that being said I would not rule out buying a single family and turning it into a rental. I have done this an there are arguments for both sides. Personally when multifamily units  are selling for all the money why not look at the single family market. 

    I am talking investment grade stuff, not completely turn key units. I have bought 3 units recently, spending 5k, 15k, 24k one of which was an MLS listed property (24k one). That was almost ready to rent but I redid the kitchen and painted and removed a platform. You are not going to buy a 3 family in my market for 44k - you just aren't.

    I am not preaching at you at all, just sharing experience. Welcome! 


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  • Filipe Pereira
    Property Manager · Windsor Locks, CT · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    Hey @Mike O'Brien, welcome to bigger pockets! 

    It's great that you have your living expenses down to almost nothing. Often that's the biggest hurdle in being able to save for investing. 

    With the market the way that it is, I would say option 1 or 3 are probably your best bet. In option 3 you're still banking on the market to continue to appreciate, so that does make me hesitate a bit. As to option 1, with the market being as crazy as it is, seller's aren't really inclined to take FHA offers at this time. However, this doesn't mean you can't get lucky.

    1Reply
  • Ryan Twombly
    Providence, RI · Member since 2019 · 37 posts · 35 votes
    5y

    @Mike O'Brien 

    I live and invest in Middletown myself, I think it's a great city with a lot of potential. The strong main street and college scene really set it apart from other towns in the area in my opinion. Supply is definitely the challenge right now as in any city; very little supply on the market, especially in the multifamily sector. With that being said I am a big proponent of househacking as a way to get started. I've been househacking a 3-unit for the past year and wouldn't trade it for anything. I live for free, and when I move out, my returns will be through the roof because of the low down payment. There is no other asset out there that you can buy with a 30 year fixed rate mortgage below 3% interest. With that being said, be very cautious not to over leverage. I personally would only use this kind of leverage on a property with upside where I can force appreciation in one way or another; I never want to be in a position where I am underwater if the market were to contract. 

    Feel free to reach out if you have any questions about the local market or just want to chat!

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  • Michael Donovan
    New to Real Estate · CT · Member since 2020 · 10 posts · 4 votes
    5y

    All you young bucks sure do make me wish I was pushed in this direction years ago! Not that I'm saying it's too late but you know what I mean. I've been following BiggerPockets (podcast) for a while now and have done a lot of reading myself. I've also recently become a RE agent down on the CT shoreline; Old Saybrook to be specific. Would really love to engage with any and all of you to talk RE investing shop. 

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  • Filipe Pereira
    Property Manager · Windsor Locks, CT · Member since 2016 · 1k+ posts · 1k+ votes
    5y
    Originally posted by @Michael Donovan:

    All you young bucks sure do make me wish I was pushed in this direction years ago! Not that I'm saying it's too late but you know what I mean. I've been following BiggerPockets (podcast) for a while now and have done a lot of reading myself. I've also recently become a RE agent down on the CT shoreline; Old Saybrook to be specific. Would really love to engage with any and all of you to talk RE investing shop. 

    What's that quote? "The best time to plant a tree was 20 years ago, the second best time is now".

    Get after it bud! Reach out anytime, I'm an open book.

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