Did Quick Drive-By on a couple MFHs in New London. . .

[Sean McFadden]

I ended up taking a drive to New London today to take a look at a couple properties that had some cash flow potential. The properties themselves didn't look terrible, but it was the surrounding houses that had me nervous. Most of the surrounding properties were dilapidated, boarded up, or straight collapsing in on themselves. I also didn't get the safest vibe from the area. All in all, I had a bad gut reaction.

I am likely going to be financing one of these MFH with an FHA loan which will require that I take occupancy immediately and for a year. Safety concerns with that plan aside, I am also concerned with potential issues with tenants (turnover, late payments, damaging property, etc.). As the surrounding area does not lend itself to attracting stable tenants, I am thinking purchasing one of these properties may not be as great as they look on paper.

That being said, I was in the area for all of three minutes before I drove home, so it was an initial impression. I'm prequalified for 180k at the moment, so my fear is that if I want to house hack MFHs in the area, this might be the only viable option.

Has anybody had experience with a Buy and Hold strategy for MFH properties in New London? Are my fears unfounded?

[Mat O'Grady]

@Sean McFadden

Hey Sean. I have two multi families in New London. There are parts of New London I would not invest in, but people do invest there. You could give the areas another shot. Walk around at night, talk to some neighbors and see what you think. If you don't want to live there, no problem with that. Make sure you are comfortable with where you are going to live. 

I wouldn't rush to buy something; there will always be more deals.

On another note, we have a small meetup of investors from New London County. We have been meeting via ZOOM once a month. Let me know if you want to join.