Brewster St – Black Rock

[Carlin A Guarneri]

Investment Info:

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

Purchase price: $330,000
Cash invested: $1

Bought at peak of market before crash (2007). Deal = 100% financing with down-payment assistance from state; $2,500 cash at closing from seller to help with repairs. No Realtor used. Renovated first and second floors in first year, updating as needed.

What made you interested in investing in this type of deal?

Loved real estate investing and had analysis paralysis for 5 years before pulling the trigger finally in 2007 when I was able to get into the property with no money down. Guess you can call it OG house hacking.

How did you find this deal and how did you negotiate it?

Found it from a member of my neighborhood real estate group at the time. Colleagues in my state REIA Assoc (CTREIA) helped advise me and I negotiated with seller.

How did you finance this deal?

No money down via CHFA (CT FHA) 100% down loan with DAP (downpayment assistance plan)

How did you add value to the deal?

Researched future developments in the area and bought before new MetroNorth train station was built, as well as a bunch of other commerical developments. Negotiated addl contract with seller for $2500 back at closing. Renovated first and second floors up to market standards. Brought roommate in to live with me and split the cost of one of the apts.

What was the outcome?

I still own property, however property value hasn't grown much due to the correction, the rents have gone up considerably and the neighborhood is very much desired. It's a great property in a great location with great tenants and neighbors.

Lessons learned? Challenges?

• Get to know your neighbors. They will look out for you and the property.
• If living in the property you rent to tenants as well, establish boundaries in the beginning (ie – I say, I live here as well just like you.. I'm not gonna bust your balls about every little thing and I will respect your privacy, just as I would expect you to respect mine. If there is a concern, shoot me an email or text and I will handle (unless emergency) Enjoy the prop and lets respect each other.)
• SCREEN HARD

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Not on the acquisition so much, but ongoing on the property:
My GC on a few projects is really great: Lucas Papageorge of LCP General Contractors, LLC. A property manager I use ad hoc is fantastic as well: Mike Cody of WMC Properties, LLC.

Both local guys, honest, hard working, and down to earth.