Just closed on first investment, 4plex class C/D neighborhood

[Vincent L Sanchez]

Hi everyone, new to BP and excited to be a part of the community and pursue this journey of real estate. I just closed on my first 4plex with all 3 bedrooms and ready to become a great landlord to my tenants/future tenants. This 4plex is in a class C or D neighborhood (not exactly sure which) but my realtor and I saw the potential in it due to the cash flow/COC numbers we calculated and the fact it had a ton of work done to it in 2017 to get it to decent shape (all new electrical, furnaces, HWHs, renovated apartments, new roof, all doors and windows, etc.) Furthermore, I have actively been researching and there is an ongoing housing shortage in the New Haven area, a consistent population growth, great property price to rent ratio, some new construction projects in the nearby area of the property and that it takes a certain type of person with great patience and "people" skills to succeed in these type of neighborhoods. It is a starting point for me that I am willing to take a risk on and learn my lesson if it turns out a nightmare. I did some research trying to find a good detailed lease template to have my tenants sign but none seem to be specific and exhaustive in terms of covering any and everything that comes with the type of tenants that one finds in these type of neighborhoods. Does anyone have experience with the lease agreements for $99 sold here on BP? or can someone point me in the right direction to a good extremely detailed lease agreement? Or should I not be as concerned with how detailed the lease actually is? I have read a ton of the posts on here to pick up some recommendations and advice for managing class C/D properties but always open to more wisdom from my fellow investors!

[Jonathan Greene]

4 units in New Haven for a new investor is going to be quite a bit of work. You should not pay $99 for a lease agreement when you have a real estate agent who helped you buy this property. They can send you a standard CT lease and then you can cruise forums for landlords to see which things you may want to add (pet fees, no smoking, etc.)

The fact that a lot of work has been done will help you in a C-/D, but choosing tenants is going to be the thing that either makes or breaks you and it's going to be hard. Good luck.