All Forum Posts by: Anthony Britto

@Anthony Britto Additional Dwelling Units are now by right in RI. You should have no problem converting that basement into a legal unit as long as all codes are met. Your best bet at this point is to get together with an architect and see what your options are. Going from a 2-3 unit may also required some additional fire/smoke alarm work. Keep in mind the law is new, and many cities are still working out the kinks in it. Therefore all the answers may not be there yet. You should check out the firetribe group on FB. There's two good presentations on there regarding ADUs. One from an architect, and another from Kyle Seyboth on his new Tiny home company. Both presentations provide a great overview of the ADU law!

You will need egress windows to legally have a bedroom down there. Egress windows are big enough so someone can climb out and there needs to be a ladder up in the window well. Is the walkout directly to the backyard or up out of a Bilco door?

Your zoning should be ok, but you want to do everything by the book (which can be costly) to percent future insurance claims or injury claims in an unpermitted basement living space.

This is a great conversation here - this is part of why I love the BP community and forums :)

If you're looking for a true BRRRR in this market, you're going to have to source off-market properties. That's just the reality in a market where home prices continue to soar and "highest and best" is being used on virtually all listings.

With that being said, there are still incredibly strong investment opportunities in many of the towns you mentioned:

-Glastonbury, Avon, Farmington: I'm a Glastonbury resident and appreciation is the name of the game. If you're willing to buy, hold, and benefit from long-term appreciation (5-7+ years), you'll reap the financial rewards. For example, the SFH I bought in 2015 is now worth 38% more! That's with me making virtually no material improvements to the property. Other home owners in town are experiencing similar equity growth.

-Manchester & Bristol: both of these towns are more affordable than the 3 mentioned above and they have strong rental outcomes. There are more multi-family and condos in these towns, which means you have a stronger likelihood of purchasing something as a rental that meets the 1% rule. You'll still experience appreciation in these towns, but at a slower rate. As such, it's important to prioritize cash flow in these towns. As a matter of fact, I am in the middle of helping a client secure a condo in Bristol that would meet the 1% rule.

-New London: lots of folks are saying that New London is on a similar trajectory as New Britain a few years back. Home prices are still reasonable, there are lots of multi-families, and cash flow is key. Only time will tell if the New London area experiences the same boom as New Britain has in the last 3-5 years, but given its proximity to the ocean, proximity to a few colleges, its affordability, and its makeup as an old mill/manufacturing town, I think it's a strong place to invest. I have a couple of excellent contacts in the area - a wholesaler and an agent/investor - who I trust and who have had a lot of success there.

There are deals out there, try to look towards the "mill towns" the towns that started around a mill most of them have mill houses which a 2-4 family properties. DM me if you have other questions regarding the area.  CT native here.

Let's talk about markets. I would definitely recommend some and stay away from others. One strategy is to look for a premium town that does not have large amounts of rental houses. They potentially getting a rental in Glastonbury, Farmington, Avon or the like town would lead to more appreciation and higher rent. But let's also talk about Manchester or Bristol. I really like both towns, especially compared to say- New Britain. Manchester and its neighborhoods feel more alive, have great niches, and local employment. I currently own 4 duplexes in the town and have sold 2 off due to the appreciation and paydown I have done in the last 5 years. With today's interest rates you need to look at cash flow, and less at price. Price matters at three points in real estate. When you buy, when you sell, and when you refinance. If you are going to keep this CT property for a long period of time, and the fixed-rate loan lets you cashflow your target amount it will not matter 10 years from now you paid 10,000-20,000 over what you think it was worth. This is provided you realistically estimate and go towards cash flow.

I hope this was helpful. Feel free to DM met.

My advice to Out of State BRRRR-ers is to evaluate firstly if turnkey, in the line of development is not a better use of your time and resources. Secondly, take multiple trips out to our market. Thirdly, make long term relationships based on relationship equity versus quick transactional relationships. It takes a lot of TRUST to win out of state and BRRRR. Speaking from experience helping many out of state investors navigate this process...