All Forum Posts by: Michael Junior

Who is investing in Fairfield county!?

I’m currently living in Fairfield, CT. I’m looking to network with people playing in this market. I have a few Propeties but I am trying to expand and really scale.

Would like to know what other people are seeing in this market.

I initially started investing in multi family, I now feel it's a bit to expensive ( MLS properties ) to cashflow substantially and am looking into the condo model.

I’m a local realtor so I have a good grasp on the market, as far as rent rates and resale values. At this point I’d rather buy two condos and cashflow $300 per unit with less expenses and liability then purchase 1 multi, cashflow a minimal amount and have to dump a bunch into Reno.

Just a few ideas going through my head- any ways very interested to see what others have going on!

Merry Christmas!!

Thank you all for the insights. I just want to get back to you all, i used a bit of everyones advice. I talked to them- explained my concerns and let them know id be raising the rent. I kindly asked them that they clean the back yard and maintain the interior of their unit as well. It went smooth- yard is clean. Unit is cleaner and my tenant even started mowing his side of the lawn and he was even out there today raking the leaves ! Again thank you all- i advice anyone who has an issue with tenants to kindly just talk about it !

@Dillon Y. Thank you very much I’m hopping on this today !

My tenants are filthy.

The back yard has toys all over the place- and just clutter throughout.

Yesterday I went in there unit- I had to snake a bathroom sink line that was clogged ( sediment build up not their fault). But I had to walk through there unit to get upstairs.

Literally piles of toys for their two kids and just a mess. Not sure how you could even live like this right?

I got in the bathroom also a mess- diapers and stuff throw about. Just not orderly at all. The walls have crayon writing on them from the children and what not.

Here’s where I’m torn.

They pay rent on time every time. I inherited these tenants when I bought the duplex 8 months ago. And I live on the other side.

What do I do? What can I do legally. I’m in CT, pretty tenant friendly place. The lease we had just expired. And honestly I just want them out- and replaced with some tenants of my choice. It’s an 800 sqft 2 bed 1 bath unit. It’s not fit for 2 adults and 2 children.

I’m coming here first to get some insight- if the general consensus is to speak with a lawyer I will. But I just want to get a feel for what others might do in this situation.

I'm curious as to others are doing.

I know you can use hard money, traditional lenders, private money ECT.

But I want some input on which route to take. I've got some rentals under my belt, I'm an active agent .. and I'm looking at deals daily.

I'm at the point where I'm ready to pull the trigger here on multiple deals that have come across the board. only problem is I'm out of capital. I've purchased 9 units in the past 7 months through 3 different properties. The first was a duplex off the MLS and then a 3 and 4 family I bought privately.

All running and operating- bringing in some decent cashflow. I have some money sitting around $30-40k. But Id rather not touch that just to have some security in the event I have some major problems come up.

If you were me.. what would you do.

I'm networking daily, looking to JV with guys out here doing what I want to do already. But I'm trying to wrap my head around a way to get myself in the deal. I'm bringing the deal, I'm willing to organize it. From acquisition to exit and everything in between. would you simply just start asking others to invest in you? how would you structure it? would it be more simple to go get a HML?

Here is a deal I'm currently looking at:

Duplex listed at $500k ( yes, Fairfield county is nuts ) its in Fairfield CT in a highly Desirable area within walking distance to the beach.

ARV- $600k PER SIDE- very good condition

Construction cost: $300K ( total remodel plus adding an additional bathroom to each unit )

so all in for 800k- would still make a pretty penny. How, if you weren't willing to bring the capital would you fund this deal.

Short and sweet question- how the heck do I raise some money without having the lengthiest track record?

Any insight would be great. look Forward to some responses

What’s your take on buying at auction ( auction.com ) - owner occupied homes?

Beyond all the other due diligence that needs to be done. Can anyone weight in on the cons and annoyance of buying with the owner in place?

@Adam Bush

Duplex- did an FHA at 5% down

Tri & Quad- partnered with private money

@Jaysen Medhurst thanks bud. Your in Greenwich I see?!

You own property there?

@Jake Stuttgen thank you I appreciate it!

What’s up BP.

I got a bit of a success story here kinda. Thanks to the community of course !

So I found BP in November 2018. Started studying up, grabbed some books and hit the streets! I knew I wanted multi family and a good starter home. Snagged up a duplex in December 2019( paid too much/ emotions took over ). Regardless I’m house hacking it. Has some unforeseen issues - who woulda though! I won’t go to much into details but there’s an extra 10 grand I wasn’t planning to spend worth of repairs. I’ve got it up and running at this point. Back unit tenanted( inherited ). Just had a toilet over flow yesterday but we won’t go there..

overall it's preforming well. While I'm living in it, my monthly living expenses run me roughly $1,100 including my utilities. Once I move out, which I plan to do in a year the unit will cashflow a measly $100 bucks after all expenses - PITI/vacancy/capx/maintenance/lawn care/ snow removal/sewer usage. I plan to raise rent this coming August when my current tenants lease is up in hopes of raising cashflow. I also plan to bill back for water- and require tenant to pay for their own garbage.

. February comes around, I still have the itch. I’m asking anyone I meet if they got a multi for sale and boom good old Joe comes into the picture. Older gentleman- owns 90 units in our area ( Fairfield, CT ). He just happens to be building a new multi use building down on black rock Turnpike.. needs a couple extra bucks.. construction cost went way over. So he mentions he might be interested in selling a few of his properties. He sends me to go check out two houses side by side. A 3 and a 4 family. 17 parking space lot- right on black rock turnpike ( desirable area ). Asking $850k. Appraisals came in at : $400k for the 3 family and $500k for the 4 family. Long story short. We negotiated down to $840k. I partnered up with my pops and we took them down. No renovations need. Fully tenanted with all long term tenants. Rent $100-250 below market per unit. Because all the tenants have been with this same landlord for 5,6,7,8 years plus- we signed a condition to keep the rents the same for a year out of curtesy. Since we closed in March we’ve turned over 2 units and brought them to market rent. I’m self managing all the properties as of now and am on the hunt for the next deal.

First deal not the best, 2nd deal was 100% better. I’m constantly learned everyday, although the first deal didn’t end up perfect and kinda shook me up, I still saw the true power of real estate and I encourage anyone out there who has got a deal yet, or had a deal go bad.. to keep working toward that next deal.

I’m an active agent in CT, I always work with a construction company. And I plan to keep investing in real estate with a goal to reach 100+ units and hit a few flips along the way!! Thank you for reading !

Good luck BP