HALFPLEX IN CONNECTICUT

[Mike Edward]

Hey I’m in Fairfield county Currently locking in a HALFPLEX . Doing sellers finance putting down 60k . It’s Selling for 120k . Anybody have any suggestions on HALFPLEXES? Will I be able to refinance any time soon? Is a HALFPLEX a good rental property to start off first time ? It’s a side by side duplex . I want to live there for the 1 year required than rent it out . Wanted to add an additional 1/2 bathroom as well do you think that will add value to the overall monthly rent ? Any feed back is helpful thank you !

[Brandon Rush]

Hey Mike, if your intention is to invest, then most investment properties would be a good property to start off with. The fact that you are getting started is most important. If you are getting this property for $120k in Fairfield County, then it sounds like a great deal to me. Does is require lots of work or is it rent ready?

Why do you feel it is necessary to add a 1/2 bath? If it is because "you" would like a 1/2 bath, I would pause there. Take a look online at other rentals in your market. If very few are offering this additional 1/2 bath, then adding it may only result in minimal increase rent. But if multiple rentals have it and they show to demand a higher rent in your area, it may be worth considering it. Another way to look at it is, what would be your return on investment (ROI) in a 1/2 bath. Example if a half bath cost $6k to put in and you would see an additional $150 in rent, that would me your ROI would be 2.5% which is not very high. Now if it resulted in $600 more rent, you would be at 10% which looks much more acceptable.

One benefit you may get out out of a side by side duplex is the splitting of utilities. Best case scenario, everything is split out (ex. water, electricity, heating and etc.) This allows you to control costs more as over usage of any utilities is on your tenants and not you. 

Congrats on finding this deal and keep the momentum!