All Forum Posts by: Jon D.

Jon

In Connecticut you really want to stick to C plus to b neighborhoods. Start running calculations on your numbers and you will see some areas which can work. Do you have to say that your analysis of house hacking fails to consider where you become a tenant in one of the units that has additional units that you rent to other occupants? For example, in the town of Manchester there is currently a quadplex for sale on Bissell St. This property is one that I have been considering buying. A 2 bedroom unit in the town of Manchester with parking is currently renting for between $1250 to $1500. This is per unit. Let us assume that you bought the fourplex and lived in one of the four units. You would then be able to rent out the remaining units for $3750 at the minimum up to $4500 at the Maxwell. You could pay for a property manager to manage the property while you are the owner. Please have the type of properties that you need to start looking at. Making some assumptions on this quadplex it would finance approximately $3000 per month including insurance and taxes.

Welcome to the BP forums! It's great to see you taking the first steps into real estate investing. Focusing on Connecticut for your initial investment is a solid choice, especially since you’re familiar with the area. It’s common to feel overwhelmed by the various metrics and data available. To identify a "good" market, consider factors like rental yield, local job growth, and demographic trends. While it may seem challenging to find a balance between economic growth and affordability, start by researching neighborhoods with potential for cash flow. Remember, perfection isn’t necessary; taking action is key. Good luck!

can you start with a house hack?  that is the best way to start.  not everyone's family situation or lifestyle permits, but if you can, you should.

now - on to cash flow.  to summarize: there is no cash flow anywhere right now on a vanilla long term rental.  Not in Connecticut, not in Cleveland, not in California.  true cash flow is only going to come either (1) after many years of ownership, when the property is stable and rents have gone up; or (2) with a completely different, probably tougher strategy or niche.

think about a down payment, closing costs, light repairs, rent ready costs, commission to the property management company, then you fix a dishwasher, then in year 2 the furnace goes. then when it's finally rented, in that first month your rent is $14 more than your expenses.  is that cash flow?  what about all the costs it took to buy and put into service?

i say this not to discourage you from investing, but to help set your expectations properly.  the benefits of long term rentals are... all of them together.  the leverage of buying with debt, the mortgage paydown, the potential for appreciation, the potential tax benefits.

a good market is one you can be successful in.  so if you're in Connecticut, invest in Connecticut.  i own a property in Stamford, and I hope to start investing there more in 2025 or 2026.  i like northern fairfield county.