Our first Waterbury Ct Purchase

14 Replies | Waterbury, Connecticut

We are completing a Rehab and Buy and Hold in Waterbury Ct.  We think Waterbury might present more of a problem rental wise then our duplexs in Danbury and Bristol Ct and are wondering where we should be looking in Ct for our next property.  We are interested in buying multi family houses.    We like Danbury Ct best as it seems to be very easy to rent.  Currently in Waterbury we have one of our completed and rehabbed rentals  up for Rent for $1,000 and are wondering if we can get that rent for our unit.  It is in completly new rehabbed condition. .  Anyone here with Waterbury experience?   Any insight as to wheter Waterbury will be appreciating  2%?

Thanks @Trevor Ewen and @Charles Worth for the referral and vote of confidence. I think @Michael Noto (posted earlier) is a great resource to speak with. This seems to be right in his wheelhouse.

We have been focused on fix and flips in Fairfield County and while we do own a 16 unit in Central CT, we got it at a price that works for us. Other properties we have come across don't work for the numbers we're looking to hit.

Depends where you're located in Waterbury. The better parts of Waterbury are in the west end - Town Plot. I flipped a house in that area earlier this year that would have been a solid rental. But it was an SFR - 3/1.5 1100sq ft with potential rent in the $1100 range.

Personally, that was my first and last property in Waterbury. Simply, there are better markets.

P.S. - The @ isn't currently working for me Barbara

Originally posted by @Griffin Fehrs :

Depends where you're located in Waterbury. The better parts of Waterbury are in the west end - Town Plot. I flipped a house in that area earlier this year that would have been a solid rental. But it was an SFR - 3/1.5 1100sq ft with potential rent in the $1100 range.

Personally, that was my first and last property in Waterbury. Simply, there are better markets.

P.S. - The @ isn't currently working for me Barbara

What do you consider better markets for multi family properties???

My @ isn't working either

Originally posted by @Michael Noto :

@Barbara Goodman are you looking for a fixer upper or a conventional buy and hold?

Hi Michael,

We are looking for a newer house (no 1900 houses).  We are looking for a house that has to be rehabbed that we can Buy, Renovate Rent and refinance.  We need it to cash flow.

Do you have any reccomendations?

Do you know whether Waterbury and Bristol are appreciating?  What %??

@Barbara G. Southington, Parts of Bristol and New Britain, West Hartford, Farmington - to name a few. But, that is more east and where I am more familiar. Not so much so for the Danbury market and surrounding areas in the western parts of CT. 

I've lived next to Waterbury my whole life, so perhaps I'm a bit bias. But for me, dealing with lower income isn't in my business plan. On the contrary I wouldn't go as far to say there isn't opportunity there. I know investors who only invest in Waterbury and own hundreds of units.

Putting Waterbury aside because @Griffin Fehrs summed up my thoughts on Waterbury perfectly.  There is money to be made their potentially, but unless your business plan is to deal with lower end tenants you need to know every inch of that city to make educated purchases like he outlined.

In the better parts of New Britain & Bristol, and in all of Plainville, Southington, West Hartford, Farmington, etc.. to find a house that was built in the 2000's that would fit the BRRR strategy is going to be very difficult. To find a conventional buy and hold built in the 2000's in those towns is possible, but it will take you a while to find one.

Without knowing what parts of Bristol or Waterbury you are talking about, it is impossible to answer whether those towns are appreciating. Those towns are very area specific.

@Michael Noto

@Griffin Fehrs:

Depends where you're located in Waterbury. The better parts of Waterbury are in the west end - Town Plot. I flipped a house in that area earlier this year that would have been a solid rental. But it was an SFR - 3/1.5 1100sq ft with potential rent in the $1100 range.

Personally, that was my first and last property in Waterbury. Simply, there are better markets.

Hi Michel and Griffin  It seems everyoe has agreed that Waterberry was not the best idea.  Well we wil be lucky to surive this one.  If we can get it rented we can at least go forward.

The house we bought and rehabbed is on Meridan st and I believe that is the East end.  It looks ok.   We don't really have an exit plan..  

How much was Griffin's house in the West End?  unless it cost approx $100,000 I don't see how it could have worked as a rental.  We definitley can not handle an older hosue.

Hey @Griffin Fehrs I'm new to BP and to the CT market but looking to get my feet wet. Thanks for your info! Currently looking at New Haven but had some interest in Waterbury and would would love to learn from you and other Central CT investors

Hi @Barbara G, 

i live close by in the Bronx, and I have also purchased a SFH in Waterbury, CT. Everyone responding here is pretty spot on whether it is worth the effort to rehab in Waterbury when other CT towns have more pleasant results. I have spent almost 2 years rehabbing a SFH on 4 building lots, on a lease-to-own basis. I just posted a few minutes ago, as i went the lease-to-own route to "sell" my large/expensive home.

Waterbury is akin to Yonkers, but its 4x larger in size but has 1/4 the population.  In Waterbury, roughly, 20-22% are on social services, while in Yonkers, its not that high.  But, after a year plus, you already know that.

Section 8 housing will only allow up to $1100 for a 1.5 BR house, but you know the type of tenant you will most likely have to work with for state $.

20+ years ago, the bad mayoral elect pilfered the Waterbury coffers, and its been that long to recover.  With high social services paying, and less people working and paying taxes, it will be a while for this city to recover like new Britain, or even close to Southington.

I know numerous contractors in the area if you need help.  and, if you feel you have really reliable guys, please let me know- always good to know some good guys.

-Ken

@Barbara G.

Hi Barbara I understand how prices in Waterbury can be attractive on some of the deals but you have to know the area because there are parts where the market is depressed and you will have a hard time getting a good tenant. I recently closed on a deal in Naugatuck the Town next to Waterbury and its been great so far its already rented. I will seek in this area instead of Waterbury.