All Forum Posts by: William Collins

1. What is the cap rate that I should expect with investments in Hartford

4-12 historically

2. What areas should I consider for best long term equity growth

West Hartford, Avon, Farmington, Simsbury, Glastonbury, Rock Hill

3. What areas should I consider for best cash flow for rentals

controversial opinion here- NOT New Britain NOT Hartford

4. What are other risks that I should consider when looking at a rental multifamily duplex, tri-plex or quad.

Skip the duplex- look at tri and quad.

5. Would you recommend me other areas/states for a new investor? I'm from Seattle, Washington and dont see lot of opportunities in our backyard.

New York and Mass are even more pro tenant than CT.

1)First piece of advice- house hack if you can before you get married. If you have a multifamily house and you can house hack your personal apartment in that investment house by renting to friends/co workers it accelerates everything.

2) Saying yes to investments I should have said no to- causing lack of focus.   Connecticut has some great meet up's. Get out there- talk to folks, they love to share their stories. 

So I have a crazier plan? 

How about you become a traveling nurse and learn what and where nurses need houses/ are? Niche down to your specialty. If your area hires traveling nurses- talk to HR and find out the stipend they get, and set up the ideal nurse home away from homes.  

@John Santiago FHA's are awesome. So the two things to consider is:

1) are you staying there a long time? yes/no

If yes- make sure the place fits with your lifestyle.  Right neighborhood, amenities, proximity to work, home office, etc.  Find a place where you could ideally house hack rooms in your unit and have multiple other units to rent out.

If no- run the numbers to make sure it cash flows for when you leave and that it is in the target  market you like to buy in.

2) Is there the potential to add an ADU? yes/no

If yes, build and live in the ADU so you have new place while renting out the old

If no, what about garages you could rent out?

3) What will the cash flow per headache be?

This is highly precise metric.  Nicer towns, nicer units- less tenant problems- less headaches.

4) When using you FHA, you can count other official units but not house hacks in the financing. Think of them as icing on the cake.

@Sasha Fukuda I would not even offer her a reduction at this point.  This is the size of the hotwater heater for the apartment. A new heater is not going to retain this tenant or attract a new one.  This is a train the tenant issue.

Update time on previous threads, mainly as accountability for all y'all CT real estate folks.  

Where are we:  In 2021 we moved lot's of properties and have a better mix.

Beginning 2021 Breakdown summary: 1 sixplex, 1 fourplex, 2 triplexes, and 12 duplexes.  Total units: 40

Beginning 2022: 4 duplexes in  Manchester, 1 triplex, 1 fiveplex, 1 sixplex in Canton, 2 duplexes in Southing, a duplex and triplex in Berlin, and a duplex, a quad and sixplex in Bristol.  Total end units: 43

Goal 1: 50 units total in 2021- missed this.  But on track to surpass it in 2022.  Have a quad under contract. 

Goal 2: Each building cashflows $1000 or more. Each door cashflows $300 as an average. In the progress of weeding/ harvesting equity from duplexes which are good- but not great cash flowers. This was accomplished and is my new mark.

Goal 3: Create $500,000 of equity from forced appreciation. In progress, I have a line of sight to the creation but need to close on some units and start raising NOI. This was accomplished

Goal 4: Controlled real estate passing $3,500,000 of value.  I blew past this one by a mile currently at  $4,900,000 range.

What are my main challenges:

1. The first contractor I had, who did great on half my portfolio went sour.  Did some real halfway work and made me start looking elsewhere.
   1. Found a new reliable GC
   2. Evelevated my handy man crews
2. The town did not accept the hardship to convert a commercial unit to a residential unit. So I was trying to go from mixed-use to residential- and that was blocked.    
3. 1. Not much I can do here, but all units are currently leased!
4. Velocity of money.  I am seeing lots of really decent investments, but having the capital through 1031's is taking time and the personal capital contributions are limited.

What do I need:

• More time.
• More capital.
• A mastermind of folks operating at this level.  I would call it the middle ground, not a rookie- not a mogul. Got a good group together in Connecticut. 

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Update time on previous threads, mainly as accountability for all y'all CT real estate folks.

Where are we: Currently we are up to 16 properties across Connecticut, but about to 1031 ladder a bunch.

Breakdown summary: 1 sixplex, 1 fourplex, 2 triplexes, and 12 duplexes. Total units: 40

Selling this year: 5 duplexes, 1 triplex. Buying a triplex, sixplex, fiveplex, and two four plexes. Total end units: 49

Goal 1: 50 units total in 2021- Close but no line of sight to that last unit.

Goal 2: Each building cashflows $1000 or more. Each door cashflows $300 as an average. In the progress of weeding/ harvesting equity from duplexes which are good- but not great cash flowers

Goal 3: Create $500,000 of equity from forced appreciation. In progress, I have a line of sight to the creation but need to close on some units and start raising NOI.

Goal 4: Controlled real estate passing $3,500,000 of value. I blew past this one by a mile currently at $4,900,000 range.

What are my main challenges:

• The first contractor I had, who did great on half my portfolio went sour. Did some real halfway work and made me start looking elsewhere.
• The town did not accept the hardship to convert a commercial unit to a residential unit. So I was trying to go from mixed-use to residential- and that was blocked.
• Velocity of money. I am seeing lots of really decent investments, but having the capital through 1031's is taking time and the personal capital contributions are limited.

What do I need:

• More time.
• More capital.
• A mastermind of folks operating at this level. I would call it the middle ground, not a rookie- not a mogul.

I wanted to gauge who would be interested in a virtual lunch/ networking event at Friday's at Noon to talk about the Connecticut market. Time (Noon/ Friday/ ET).  Meeting forum: Google. 

@Richard Alan this is a velocity of money question.  There is little money to be made on a single-family rental doing long term in that town.  Short-term renting on the other hand may be ideal.  Take a look at airdna.co for some data.  Business travel to the town is high.  

BRRRR means that the profit is there both to be had in equity gain in the renovation, and also on the rent side. If someone could clear say $25000 to $50000 in true profit flipping, but it would take 5 to 10 years to do renting (long term) there is a good point in selling. Also, some people are great flippers, but horrible landlords. Remember "real estate investing" covers businesses such as wholesale (real short), flipping (short term), and realtor. Those are all short business models based on volume and turnover. Then you have longer-term investors who are buying and holding- to then rent, lease, or occupy for appreciation. None are right and none are wrong- they are all different models which may or may not work in a given town at a given point of time.

Good morning @Luca Mastrangelo

1) Very familiar with the area my brother teaches in town.

2) So you have lot's of paydown and some appreciation

3) Worth 1031'ing if you need to

4) That's correct from what I read.

5) So is the property a burden right now.  Are tenants paying timely? 

I would love to know the address as I am familiar with the town.  Is it an over under or a side/side.

@Mario Nakuci let's play a different game. What about you "relocating" to a new neighborhood- which will allow you to use an FHA to buy your quadruplex. Makes it a hell of a lot easier to work on if you are in one unit. Rent out the townhouse for a year, but first, get a HELOC on it (so you can pull cash to help rehab the new property). So I imagine renting your townhome should be easy. Do not trigger mortgage fraud, live in a unit for at least one year (or what your mortgage states). This will let you get the best rate on the buy, maybe doing a financed rehab on the property.