First Tax auction in Ansonia CT
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Ansonia.
Purchase price: $90,000
Cash invested: $40,000
Duplex acquired through city tax auction. Purchased at $90k with $110k in rehab work Financed with hard money. ARV appraisal came in @ 285k. Refinancing at 75% LTV. Will be able to cashflow $900-$1000 a month when complete
What made you interested in investing in this type of deal?
As a local realtor I have first hand experience on how hard it is finding deals on the market. I started focusing on off market deals and thats what lead me to city/town auctions.
How did you find this deal and how did you negotiate it?
Judicial website is gold for finding deals. because it was an auction with leans, i had my attorney negotiate the larger leans in order to clear title
How did you finance this deal?
Financed through Lima One Capitol using hard money
How did you add value to the deal?
added and additional bedroom and bath to both units, added parking, and finished the basement.
What was the outcome?
Currently 85% done with the rehab.
Lessons learned? Challenges?
Finding the right contractor is a monster if its own. The state of Connecticut has zero regulation when it comes to who can become a licensed GC. I had to fire my first contractor for not paying the subs.