All Forum Posts by: Joseph Baccash

Kenny, I also grew up in Derby.  I wouldn't characterize it as "slowly coming around".  There are definitely several nice working class neighborhoods as Conor says (Conor, related to Heather?).  But also some really rough areas. Judging by your $35K/unit price, I suspect you are in a tougher area.  I would call the intersection of 6th Street and Anson St. the epicenter of the bad area (I lived 0.5-0.75mi from there).  Drugs, crime, abject poverty, etc.  The surrounding streets are not great either: Hawkins, Smith, 7th.  A friend of mine currently lives on Olivia St.  He has the means and as such, that will not be where he eventually raises his kids.  Some landlords thrive in low income area investing. Just know that if your realtor is selling you the gentrifying neighborhood story, I'd be cautious at best, fire them at worst. That area has been bad for a long time and there's little chance of a revival.   I don't know New Haven as well but the Whalley Ave corridor is the bad area.  By all means, invest for cash flow and assume zero or modestly negative price appreciation.  Just know what you'd be getting yourself into.  

Without getting too political, yes it's sad that CT seems like a dying state. It's hard to be optimistic about the fiscal future of the state. From a RE perspective, you have to invest on the basis of cash flow rather than appreciation. You can't expect any "free appreciation" but rather appreciation must come from adding value to the property (i.e. new kitchens/baths) through sweat equity or paying for the reno. Of course there will be little pockets of gentrification and amenity build-out (think West Hartford) but that's the exception. High taxes => businesses leave => fewer jobs => people leave => rents decrease and buyer pool thins. Connecticut doesn't have the luxury of California's population growth/topography/weather/Silicon Valley critical mass to mitigate an unfriendly business climate. I think the best option is to be conservative with your numbers. Assume zero price appreciation, increasing taxes, and zero rent growth. There's a way to succeed in CT, plenty of people do. It's just more difficult than other parts of the country.

Welcome to BP! 

I'm also a new investor located in Middletown. 

What type of property are you looking for? I'm shooting for a 3-4 family financed with an FHA loan. (House hack as Brandon Turner likes to say). Open to other deal types in the future but my conservative nature leans me toward a buy and hold strategy.

Thanks @Michael Noto! 

Interesting. I'm open to other towns as well.  Just trying to stick to the upside-down V area along I-91 and Route 9 between Wallingford and, say, Haddam. Open to Rocky Hill, Berlin, as far north as Glastonbury, probably not New Britain because taxes are tough. 

I do have access to MLS listings through my current realtor but if you come across anything interesting from a buy-and-hold perspective I'd love to hear from you. For this first purchase, I'm not looking for much of a fixer upper but that could change on future deals as I get more comfortable.

Thanks again,

Joe

Hi Everyone, I've been a passive reader/podcast listener on BP for 6-8 months now, but this is my first forum post. 

For the last couple of months, I've been looking to acquire a 3-4 family property with an FHA owner-occupied loan in central CT (Middletown, Portland, Wallingford, etc. commuting distance to Hartford). I have a realtor and through the MLS we haven't found very many 1% deals. Any 1% deals we do find are in questionable neighborhoods and/or require repairs that push my cost basis up. I've seen several borderline 1% deals but they are always razor thin right at that 1%. Couple that with the high CT taxes making me nervous about applying the 50% rule and I'm not having much luck finding attractive opportunities.

Am I being impatient or is CT/Central CT an exception to the 1% rule?

Beyond seeking answers, I'm also looking to network to get to know some fellow CT BP'ers. Thanks!

Joe