BRRR In Connecticut

[Anthony Britto]

Hello just looking to see if it’s still possible to do this strategy in Connecticut in this market. I live in Rhode Island so Connecticut isn’t that far from me and I realized it wouldn’t be easier to start closer. I was looking for 3/4 families and I can find more affordable ones in CT. I was thinking about New London. I took out a 140K and don’t mind leaving 10K or so in the house off the Heloc and pay that back with the rental income if necessary. It’s this still a viable option? Looking for 3/4 families in the 200 thousands. Thanks

[William Collins]

Let's talk about markets. I would definitely recommend some and stay away from others. One strategy is to look for a premium town that does not have large amounts of rental houses. They potentially getting a rental in Glastonbury, Farmington, Avon or the like town would lead to more appreciation and higher rent. But let's also talk about Manchester or Bristol. I really like both towns, especially compared to say- New Britain. Manchester and its neighborhoods feel more alive, have great niches, and local employment. I currently own 4 duplexes in the town and have sold 2 off due to the appreciation and paydown I have done in the last 5 years. With today's interest rates you need to look at cash flow, and less at price. Price matters at three points in real estate. When you buy, when you sell, and when you refinance. If you are going to keep this CT property for a long period of time, and the fixed-rate loan lets you cashflow your target amount it will not matter 10 years from now you paid 10,000-20,000 over what you think it was worth. This is provided you realistically estimate and go towards cash flow.

I hope this was helpful. Feel free to DM met.