14.5% COC Return: Central CT Triplex

[Joseph Salzillo]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $231,000
Cash invested: $58,000

Commercial loan triplex purchase in central CT with partners! This one brings in $2,915/mo in gross income with roughly $700/mo pure cashflow after mortgage PITI, property management, maintenance, CAPEX, and 8% estimated vacancy; pro forma 14.5% cash on cash return.

How did you finance this deal?

80% LTV Commercial loan amortized over 30 years

How did you add value to the deal?

The property is currently being stabilized by removing non-paying tenants and upgrading each unit with newer finishes. Proforma rents with updated finishes are projected to be $3,100/mo

[Joseph Salzillo]

@Chris Webb you'd be surprised! There are a lot of neighboring towns to Hartford that regularly hit the $70k-$80k/unit mark in C+/B- class locations with rents ranging from $900/mo to $1250/mo on average. The downsides to CT are population decreasing and high taxes, however, there are still deals to be found with great teams in place!