Investor · Rocky Hill, CT · Member since 2013 · 373 posts · 299 votes
Thanks to the help of @Michael Noto myself and my partner are closing on our first property in New Britain, CT tomorrow afternoon. This is in a good neighborhood, directly across from a school- a three family unit. This REO property does need some renovation, but it looks to be in surprisingly good shape. I will take photo's of the units and progress as we go.
Hartsdale, NY · Member since 2015 · 874 posts · 218 votes
11y
We live in Putnam County but have our investment houses in Conn up to this point. We are going to close on 2 duplexes in Bristol. I am not excited about that buy. We had to put too much down (30%). There is no renovation needed as they are newer construction. There is a slim possibility, although we have not investigated it and did not consider it when we bought, that we might (might) have room to put a new matching duplex up. That would interest us if we could put it up at the right price and if there is room and if it is allowed.
You say "There was a recent light railish project in the area making a devoted bus lane into and out of Hartford- which I believe will change some of these neighborhoods". Unfortunetley I do not know what you mean. What does "light rallish project" mean? and how will it change these neighborhoods?
Investor · Rocky Hill, CT · Member since 2013 · 373 posts · 299 votes
11y
The project is called "CT Fasttrack" it runs regional buses (including Bristol) to a hub in New Britain. From New Britain to Hartford there is a devoted road (converted rail track) for the buses to run on avoiding I84 traffic, which btw is under construction this summer.
As for the multiple duplexes in Bristol- the money is made on the buy side. The amount of cash tied up may be unpalatable, but what is the cashflow?
Rocky Hill, CT · Member since 2014 · 200 posts · 56 votes
11y
@William Collins - Great job taking action and getting your first deal done. You picked the right agent to work with as @Michael Noto - knows the market and is actively investing in the same markets. I have a triplex around the corner from Martha Hart Park which is not far from you. I installed a new roof last year. Had two layers of asphalt and the original cedar shake to remove as well as installing all new plywood sheathing. Let me know if you need a roofer. What have you recieved for roof quotes?
Investor · Rocky Hill, CT · Member since 2013 · 373 posts · 299 votes
11y
Update on the project and questions: We are in the process of buttoning up the 1st two rentals units- 2 2br units, which will be ready by mid June- I will be posting some pictures on it next week. We have had some cost issues and win's but all in all the inside of the house is shaping up really nice- the issue is the roof.
The roof itself is a multiple layer older roof on typical New Britain 3rd floor heights, so the quote I just received is causing a major project issue (it is about the same amount of the rest of the renovation- just under 30k). So I am looking for any roofer recommendations for New Britain for a comparison.
Rocky Hill, CT · Member since 2014 · 200 posts · 56 votes
11y
@William Collins - I had 3 layers removed, all new plywood sheeting and arch shingles done for $12k. Did you contact the roofer that I refered you too? He is very good...one of the few contractors I didn't have to babysit. They know what they are doing.
Hartsdale, NY · Member since 2015 · 874 posts · 218 votes
11y
Hi William,
How are the roof estimates progresing? That's what happens with renovation budgets they always seem to go up.
Can you reccomend your handyman and or your Painter to us. We started our Waterbury renovation about the same time you started your renovation. I think you are running ahead of our time frame. We might be finished the beginning of July? Your rent roll is higher then our Duplex and we also have to replace all the appliances and the complete kitchens .
Good Luck on getting a more competitve roof estimate, Hopefully Eric Munson's reccomendation will be a great deal less for you. Eric Munson also said that the Renovation process is "Short Term Pain for Long Term Gain" so from his mouth to God's Ears.
Investor · Rocky Hill, CT · Member since 2013 · 373 posts · 299 votes
11y
So update on the house, the project is wrapping up and looking pretty nice. We should have the 1st and 2nd floor units ready to show by 8/1 and the third floor by 8/30. There were some price over runs- but it was the 1st project of hopefully many. I will post some photos soon.
Investor · Rocky Hill, CT · Member since 2013 · 373 posts · 299 votes
11y
Tomorrow the 1st 2 units of 3 will list for rent. Definitely a bit more involved with this project than anticipated but I want to bomb.... errr tenant proof as we went. All of the floors are now vinyl plank, cast iron tubs, new washer/dryer in each unit (to attract upper end of market), 2 of 3 units needed new HVAC, etc. Total all in cost of rehab is going to be $50,000.
So numbers are: 100,000 buy, 50,000 rehab, rents 950, 900, 850 (2700 total). We should be able to refinance out 140,000 and so in a few months the property will be a fully successful BRRR. @Michael Noto thank you for the advice along the way.
Investor · Jacksonville, FL · Member since 2014 · 172 posts · 73 votes
11y
Nicely done. I love your strategy (also heard it 1st termed on the podcasts). I also appreciated your chronological updates start to finish, photos included, sharing the numbers with us. Again, great job!