All Forum Posts by: William Collins

Rachel,

It really comes down to the fact of whether or not you want to be able to drive to view your property. As a person who invests and lives in Connecticut there is still the opportunity to invest in this state and make a reasonable return. Even though, as everyone has pointed out, some of the economic factors aren't as growth indicated as some other markets growth. I do and will continue to invest in Connecticut as I like to do the BRRRR strategy and the projects that are in Connecticut I have several crews already set up to help me turn those type of properties. The questions that I would ask myself are three:

1. Do I need to be able to drive to my investment?

2. Is there some type of synergy with a different business or family need wear a different market such as a North Carolina or a Florida which aligns with your greater goals. Or even a house in the Cape, which you could short term rent, and get 2 weeks vacation time out of. You do not want to be there absentee landlord whose property gets neglected.

3) What is your investing investing to buy and hold or are you trying to go for a quick appreciation play?

With this investment where this investment in Connecticut actually is to help us and let us know what type of Renovations potentially needed. If the house has a dirt floor usually is of significant age which means though it might not look like you have knob and tube wiring. I'd be very cautious about when you open the walls because I have found many places that have. Also when you look at the age of the plumbing a lot of it will probably be cast iron or galvanized. Depending on how long it's been neglected those pipes which are in the wall could have rot. So one of The Tell-Tale things to look for is where the down down drain it goes all the way into the basement at connection to the sewer and check those pipes for any type of leakage of rot.

@Filipe Pereira We are still using that funds at this point. 

Refinanced:

6) Duplex in Manchester- acquired from MLS fall of 2016 estimated July completion

2800 rent roll estimated 75,000 acquisition. 70,000 renovation valuation estimate $210,000 looking for 75% refi

Cash flow above expenses of $800 or 4% of the goalTrue up rent roll was 2650, and the value was $240,000, refinanced out $152,000

In progress:

7) Duplex in Bristol- acquiring from MLS end of May 2017

2200 rent roll estimated 90,000 acquisition, 25,000 renovation, valuation estimate of $160,000 looking for 75% refi

This will be online by 11/1, and will be valued at 180,00 due to recent comps

Cash flow above expense of $400 or 2% of the goal

8) Duplex in Manchester- acquired from online auction in Winter of 2016 new completion date 11/30. The auction had a tax lien outstanding preventing us from pulling permits for several months while clearing it.

2800 rent roll estimated 83,000 acquisition. 70,000 renovation valuation estimate of $210,000 looking for 75% refi

Cash flow above expenses of $800 or 4% of the goal

9) Triplex in Berlin- acquired from auction winter of 2016 Moved to on hold until November for Roofing crews.

4200 rent roll estimated 125,000 acquisition. 85,000 renovation, valuation estimate of $300,000 looking for 75% refi

Cash Flow above expense of $1000 or 5% of goal

10) Quadraplex bought in Bristol CT for 70,000 without entering the house.

3000 estimated rent roll- 70,000 acquisition, 80,000 renovations valuation estimate of 300,000 with an estimated refi of 75%

Cash flow will be $800 above expenses or 4% of goal.

So if we complete these all by 12/31 we will be at 32.75%, close to ⅓ of the way to the goal. 

@Brandon Turner  I own a brewery and several properties in the town.  The area is good, but as always some streets are to be avoided. The one thing is out here make sure you look at property taxes.  My wife is from the Pacific Northwest (and we have driven through your town), and I know your tax values are not in line with the Northeast.

As you live in Massachusetts by the property is in Connecticut I would recommend a small Regional Bank by the name of Berkshire Bank which does commercial lending make sure you're talking to their commercial Lending though.

I would agree with @Kris Lippi there are deals to be found. The time on market is key, especially when dealing with a HUD or REO. In Connecticut at least the bank/ HUD manager will start accepting "investor level offers". The other thing to watch for is "back on market". This means a deal has fallen through. Depending on why that house is back on market the seller may be very motivated to move on selling the house. For example a bad inspection report showing that the owner would need to spend a significant amount could cause a house to fall out especially if the buyer is not willing to do those repairs. Hope that helps.

I know this year I have picked up 8 properties which I could flip them all (holding 6, flipping 2).  

@Rabih El-Khoury  I am on track for doing it in just over 5 years.  

https://www.biggerpockets.com/forums/223/topics/445367-full-time-employee-multiple-brrrr-side-hustle-2875-to-goal?page=1

Self filed, but lawyer reviewed after.

@Nathan Ku All properties are held in an LLC name. Due to the fact we will almost hit 2,000,000 in assets in that LLC, we might need to split to 2 LLC's to separate risk. I strongly believe 2 things. 1) if this is your first property- personal name is OK, but if this is a business- make it a business. 2) Risk is something to be planned for before it happens to you.

@Lynne Stiller My cousin and I are 50/50 partners.  Initially I brought the plan and the management, he brought the cash to start.  Now we are adapting to what our forte's are.