Southington CT Duplex Househack with Potential for Subdivision

[Joseph Salzillo]

Investment Info:

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

Purchase price: $358,000
Cash invested: $20,000

This is a duplex house-hack that my clients closed on in a lovely B+ class town in central Connecticut. They are going to turn the 2/1 on the first floor into a 3/1 by adding another door with a hallway between two rooms which will bump market rents from $1550/mo to $1800/mo for that one unit. There will be GRI anywhere between $3600/mo to $4000/mo with this property which cashflows day one after they move out from the property, so long as they self-manage.

Lessons learned? Challenges?

As if this isn't enough, the property itself is Zoned I-1 industrial, AND comes with a large plot of land with a significant amount of frontage on the road. With an approval of a variance with this town, they should be able to subdivide that vacant plot of land and either sell if off or build another structure on it while retaining I-1 zoning! That's a huge upside potential that needed to be considered when placing an offer!