I am having some difficulty narrowing down my options of locations to invest in. I have a few mentors that are all based out of one area (windsor) that are pushing me to invest there but I have not been able to talk to anyone else about other possible locations in close proximity to my work. Anyone knowledgeable on the market in Northern Connecticut would be very appreciated
I currently house hack in New Britain and also own property in Windsor Locks! Feel free to message me.Happy to answer any questions you may have.
@Rachael Agruso thanks for reaching out. I would love to here about your experience finding a property in Windsor locks
@Mack Bailey Where do you work?
Simsbury, North Haven, Winsdor and Hartford all have opportunities for house hacking.
How are you going about looking fro your deals?
@Craig Bellot I live in simsbury on the granby border and work in Mass. 15 minutes North of granby. I haven't considered Simsbury as it is VERY expensive
@Craig Bellot I have only looked in Windsor locks so far
Hello @Mack Bailey ,
House hacking is the best way to start out, congrats on the journey.
As far as getting started, I would identify the market you wish to invest in, don't count out Simsbury because it is too expensive. Let the numbers dictate the investment, pick a town you want to be in, and often times with the house hack, you can "over pay". So something that you underwrite as an investment with 25% down, may not work. But if your goal is to remove your housing bill, 3.5% down may work. It all depends on your goals.
My advice would be to max out the loan and unit count in a really good town. Its easier to go from a 4 unit to a 3 unit then it is from a 3 to a 4 when it comes to financing the next one.
I would also recommend finding an agent in the town you want to invest in, that has some investing experience, and possibly has worked with house hacking clients before. They will also be able to help with your underwriting, more importantly the expenses and cap ex of owning real estate in that market. It is really hard at first to understand what it costs to run a property. You often find out after owning it for a year or two, which gives you knowledge on the next one.
I would also recommend reading The House Hacking book and J Scott's book on rehabbing, then once you purchase your property get Brandons book on managing rental properties.
@Scott Hollister I have really never considered that as an option but if the numbers work I suppose theres nothing wrong with it. Thank you for the support and advice!
@Mack Bailey I have been house hacking in New Britain, Ct since 2016 (2 different houses now) and the cash flow is great. Albeit it wont be like house hacking in other area like West Hartford... but the upside is there is greater cash flow.
I would suggest looking at areas like Middletown, New Britain, Windsor, East Hartford and Manchester
Let me know if you have any questions about how to run the numbers for a house hack. Congrats on getting started.
@Michael Doherty Thank you for the advice and support. I'll be in touch when I'm a bit closer to getting started
@Mack Bailey , following up on what @Scott Hollister pointed out, MFR is the way to go, if you can find the right property. You could get a 4-unit, rent out 3 units as normal, then "house hack" your unit (assuming it's a 2 or 3 bedroom). Then in a few years when you move out, the property should function just like a normal MFR. You have a long-term asset. The problem with traditional house hacking (e.g., a 3-bed SFR) is once you move out you lose eyes on the place and there can be A LOT more management.
As far as towns, I'd also consider Manchester, Enfield, Glastonbury. Lots of options, check out these properties:
@Jaysen Medhurst thank you so much! I will definitely take a look at the properties
@Mack Bailey good opportunity in your area for sure I'm living/investing in Enfield and may start soon in Springfield MA as I also work up there.
@Gordon Hurley I havent heard anything but bad stories from Springfield. Is there a good area inside it?
@Mack Bailey you can hear bad stories about everything if your listeninglol. It's all about what you find, in the Indian orchard area I see alot of multis that look good to me.
@Gordon Hurley good to know. I'll take a peek
@Mack Bailey reach out to a local broker/agent who also invests in the area. I would be happy to share my experience. We hold six properties in Class A towns (Granby, E Granby) and we manage properties in Simsbury, Bristol, Granby, and the surrounding towns. Never let "expensive" markets hold you back from getting started. There is ALWAYS a way and options are limitless. I reside in Granby and run a small brokerage here. Look us up sometime.
@Rick Santasiere I sent a connection request. I would love to pick your brain
@rachael agruso Can I reach out to you as well? I am new real estate investing, but i would love to hear about your experiences with New Britain. It seems to be an area that I am constantly hearing or reading about.
@Joseph Nelson yes definitely! Feel free to message me whenever