All Forum Posts by: Michael Doherty

@Danny Lee I have been having success in Ct, specifically Central Ct. Specifically areas like New Britain, East Hartford, Manchester, Bristol, Middletown. The cap rates are decent and the cash flow is great. All my properties are in the Central Ct area. Perhaps I am biased because I live this way, but after reading countless articles/forums and discussing with OOS investors, I am fairly confident the numbers are better than Long Island, NJ and other areas of NY (listed properties). 

Let me know if you have any questions about investing in this part of the state!

@Matthew Bellino Hey Matt- like others have said- congrats on getting started. I own a few rentals near central and think New Britain is an awesome town to invest in. My first duplex was right down the road from Central and I house hacked. My net out of pocket expenses while living there were $200 a month. 

I don't think you are going to find a turn key property on the market in this area for 100k. With that said if you can bring your budget up slightly more I think you will have better luck. For reference, I purchased my duplex turn key for 185k- put 3.5% down (FHA) and my PITI including PMI insurance was $1500. I rented the top unit out for $1300.

My point being the numbers can really work in your favor in this area. If you can save a little more for a down payment I think you will be in a very good spot. Let me know if you have any questions about rental properties/running the numbers in the area. 

@Cole Beauchemin I would do 3-4 units because a FHA loan (not sure about VA) allows you to purchase up to 4 units. So if your goal is to scale and grow your portfolio, I would rather choose to house hack a 4 plex with 3.5% down over a duplex (if you have the capital).

Why not take advantage of your first time home buyer low down loan option and use it to the fullest? 

@Cole Beauchemin thank you for your service and congrats on getting started. I grew up in New London County and know the area well. I invest and live up in the Hartford county now but think New London is a great area to invest in. Between, the Coast Guard, Sub Base, EB, Pfizer, Milestone, there is a massive rental market. Just be careful what streets you look at- as I am sure your aware, New London like many other cities can be very street by street dependent. 

I house hacked my first duplex after graduating college 5 years ago and it was probably the best financial decision I made. Not only are you building equity, but if you buy right, you should have very little out of pocket expenses and 'living for free' which will tremendously help you compound your capital and save for the next one. 

If I could go back over and do it again I would look to house hack a 3-4 family rather than a 2. 

Let me know if you have any questions or I can be of any help!

@Ryan Allison like other's have said you may be able to do conventional depending on how much rehab is needed. If it not conventionally financed your either left with, cash, hard money/private money. 

On my most recent BRRRR I used a hard money lender and my terms were: they financed 90% LTV on the purchase, 90% of the rehab for 2.5pts @10.5% interest 12 month interest only note.

Hey @Kevin Santiago great for you for wanting to jump into buying property of your own. I would parlay your skills into an 'opportunity' for investors to invest with you. Don't ask for money. Present it as an opportunity to own along side you. Make it clear what you can bring to the table. If it is not money, then is it your contracting skills, management, finding the deals, negotiating ect... Figure out what it is your looking for. Are you looking to partner on a flip, buy and hold, BRRRR?

As an investor myself, I am sure I can speak for others when I say, finding good, reliable contractors is one of the hardest parts of this business. If you can prove yourself to other investors that you can help off set this burden/problem many face, of finding reliable contractors because you'll be doing/managing the work yourself...I am sure you'll have plenty of investors lining up to work with you. 

Feel free to reach out with any questions. 

@Charles Seager as an investor and an agent... I see both sides. With my investor clients I have them sign a buyer rep agreement for the specific property we are looking at. If it's multiple property in the same area, I may be generic and put the town/county. The way I look at it is... they either want to work with me or they don't. If they see the value I bring and forming lasting relationships, great! If they don't want to, I am not going to make a piece of paper make them. 

From a legal standpoint... at least in the state of Connecticut, I cannot show a property (1-4 units) listed with another broker without something signed. If they choose to be unrepresented they still have to sign acknowledging that. 

From an investor perspective, I would not sign an exclusive agreement. Keep it to just specific showings. 

@Eric Brust Hey Eric, if Connecticut is on your radar I would consider towns like New Britain, Manchester and Middletown. I own property there and the cash flow is great relative to other markets. It can be very street by street dependent but if cash flow is your goal, and your comfortable with C class neighborhoods with upside potential, definitely consider those towns. Let me know if I can be of any help. 

@Natasha Dillon  As many others have said, Hartford county is a great place to invest for cash flow. I specifically like New Britain, Middletown and Manchester, I own or have owned property in all three towns. I personally don't like investing in Hartford because of the high taxes and I think there are better opportunities/neighborhoods in surrounding towns like the one's mentioned above. Let me know if you ever have any questions.