Analyzing a market

[Kim Handelman]

Hi everyone,

I am looking all around CT trying to find a market to buy and hold that cash flows. I am now looking into Middletown, CT it's a small town but it has both Wesleyan University and Middlesex Hospital which I like because they are both recession resistant. My question is since it's small it's hard to do a lot of the research that people talk about. I'm trying to figure out the acquisition price / rent ratio and nailing down rents is really hard! There are only 2 to 3 ads on craigslist and any one time and when I look at properties that are for sale on the MLS the rents stated are all over the board! I made a spreadsheet showing 15 properties and am finding little rhyme or reason. In one neighborhood two comps that feel very comparable will have a 2 bdr for $1,200 and then across the street will be a 2 bdr for $850! That difference is make or break as far as cash flow goes as you can imagine. I asked a realtor who has lived there his whole life and he said 1bdr $900 range 2 bdr $1,100 range. Seems too good to be true to assume the cheaper ones are under market. Any other ideas on how I can get a tighter range? Thanks so much