Investing in Hartford, New Britain or Waterbury CT

[Al Y.]

I get a number of deals sent to me for multi family investing in Hartford, New Britain and Waterbury CT. Price per unit and cap rates look attractive but I read Waterbury is a rough area... Hartford has way too many properties for sale (troubling?) and New Britain seems the better of the bunch. Am I far off? What are your thoughts? Thanks

[Filipe Pereira]

Originally posted by @Al Y.:

@Filipe Pereira I like 3&4 for that reason. Easier to manage, keep full, and finance (Brrr, 30yr fixed rates). But to go out of state, I need higher ROI than what I can get in NJ so higher end doesn't appeal to me at this point, bec my goal is cash flow (appreciation is a welcome plus)

 Yes, 100% agree with you. I'd rather have 2 4s than 1 8...

I think you will have an easy time finding a higher ROI in the neighboring states. Just know that NY has some wacky landlord / tenant laws, so keep that in mind when you're evaluating it as an option. I'm not sure how familiar you are with the Hartford County area, but I've put together this list that I have shared in the past, and it may be helpful to you if you haven't already seen it.

This is by no means an attempt to push anyone into any market, but rather just some generally vague thoughts based on my experience.

Windsor is a great "small town" that generates good cashflow with moderate chances of appreciation (relative to the CT Market)

Granby even a smaller town feel than Windsor, rentals are in high demand and rent prices are high. Expect high prices too, though. Appreciation likely.

Enfield is better on cashflow, but has some rough parts of town that I personally avoid (Specifically T'ville). It does have a busy shopping area, and a mall that desperately needs attention. The proximity to MA is a benefit.

Manchester strong rents, but getting into the market can be tough, as multis are priced accordingly.

West Hartford if you're in this town you're probably banking on appreciation, not cashflow.

Glastonbury Strong rents, but expensive. Multis / rentals are not common, and in demand. Appreciation likely.

East Hartford Mostly a B/C class community. I like it. Rents are strong, proximity to downtown Hartford is a major plus. Prices have gone up steadily since 2015/2016.

New Britain Still has quite a negative stigma, mostly due to crime. I hear it all the time when I'm showing tenants units in other towns and I get asked "Do you have any other units available." You can see the expressions if you say "Yes we have one in New Britain." We manage in town, but I don't feel comfortable enough to purchase in NB myself. That being said, prices can be attractive.

Bristol Strong rental market. Seems to always have demand given proximity to Hartford, Waterbury and Meriden.