Howe Ave Buy and Hold- 12/13/2018

[Daniel Riccio Jr.]

Investment Info:

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

Purchase price: $150,500
Cash invested: $155,000

This property was purchased in an estate sale on market, in very bad shape. Property needed almost all new mechanical, had asbestos siding which needed to be re mediated, and the re-sided. New Windows, Kitchens, baths, ect... Property is now fully rented providing $3700 in rental income, and little to no maintenance calls. A few of the main reasons for doing this deal was due to the ROI numbers, but also the market and local area that it is in. We believe Shelton is an emerging market within CT, with many approved developments in the downtown area and a pro-growth local government with a track record for success. Our goal is to continue to build our multi portfolio in this city. One of the take away's from the construction process was to assess the condition of plaster walls and make a good decision regarding to keep/patch or demo and start fresh. Since there was some floor plan re-structuring since we added a bedroom on each floor, and removed a wall to open up kitchen/living room area, it would have be better to demo all plaster and start fresh. We could have saved some cost with our electrician, and paid only slightly more for our drywall contractor.In the end had a cleaner job, and it would have been done faster. Time is money! All in all, happy with the numbers of the deal, and made a great improvement to the neighborhood.