Guidance Needed! What is too large of a first rehab project?

[Joe Potenza]

BiggerPockets world I am in need of some wisdom from you BRRRR investors. I am looking at a 4 unit completely vacant property in Bridgeport, Connecticut. The property has fire damage on the top floor and needs an entire remodel. I wholesale and have completed a single family residential flip, but this is massive compared to the flip.

The property is in a bad area (but directly across from the high-school) so I am not too worried about location.

The numbers work and I think once I refinance I should be able to generate ~18%+ CaC and tie up an amount of equity I am comfortable with. My question to all of you, is do you think the rehab itself is to large of a project for my second investment? Secondly if anyone has any great contractors in Connecticut, I would love to speak to them.
Thank you!

[Craig Bellot]

Hey Joe!

The first steps I would recommend as a new investor is to get a handle on analyzing the income, expenses and ROI of these properties in Bridgeport CT. Connecticut in general is in a sellers market. You will need to be creative in negotiating to get the price / terms you need.


You can use the Bigger Pockets calculators to start. Right now rents are strong, you can get $800 for a 1 bed, $1100 for 2 bed, and up to $1300 for a 3 bedroom. Use Zillow and rentometer.com to get data and analyze a few from your home to see what type if returns there are.

If these meet your investment criteria then start looking in person by contacting the listing agent.

Let me know if you have any questions.

-Craig Bellot