Good out of state duplex deal in (CT) Connecticut?

[George C.]

Hi all-

Would love to hear any and all advice regarding this duplex (potential) buy and hold or deal BRRR located in the Northern Connecticut area north of Hartford:

Still not sure of roof, plumbing, electrical conditions, but will know more during a walkthrough of the MFR duplex next week - so I did a conservative 10% for maint. and capex. Existing tenants in place paying $1800 (combined). Checked craigslist and rentometer for area comps and could easily get this up to $2000 (combined).

Also, would love any general advice on the state of the market and investing out of state in Hartford, Connecticut area or surrounding region.

Thanks in advance!

George Clouse

@jay hinrichs

[Michael Noto]

@George C. Would you mind sharing where in northern CT this property is? $100k can either be a good deal, an average deal, or a bad deal depending on where it is located north of Hartford.

Also, for a $10,000 renovation budget you will not be able to get much done in terms of a rehab, which is probably similar in the northwest where you are located. That would maybe cover paint and flooring for a duplex. If any of the major systems need to be replaced, that will likely be your $10k right there.

With a purchase price of $100k that leads me to think either the area is really bad OR the property requires a rehab budget well north of $10k. You will obviously have a better grasp on this once you walkthrough, but knowing the market like I do I bet that is the situation you will be in.

Are the units 2 or 3 bedroom units? If they are renting 3 bedroom units for a $1800 rent roll that is indicative again of either a low income area or a house with a lot of deferred maintenance. 2 bedrooms on the other hand the area might be decent at that rent roll.

If you have any questions at all on the local markets around here do not hesitate reaching out.

Also, is your 20% down financing from a local mortgage lender here in Connecticut? The only reason I ask is because I have a good number of clients who purchase buy and hold multi family locally and they all end up having to put down 25% down for a non-owner occupied multi family. If there is a lender who does 20% down conventional fixed rate loans that info would be good to know.