All Forum Posts by: Cameron Norfleet

@Sara S. Congrats on getting into the game... I agree with @Samuel Eddinger in that you typically have to put down a sizable deposit if you're looking for decent cash flow in this market. Especially if you're buying anything on the MLS.

As for good areas to invest, you can find a deal in any city/town in CT. It's more about the numbers of the deal than the city/town that the property sits in. But if cash flow is what you're looking for, you might want to stay away from the high-priced areas. 

Hi @Reece Randall

My advice would be to stick with the FHA loan. If your goal is to pick up multiple multifamily properties, start with a 4 unit property. Live in it for 1 year, then refinance out of the FHA loan. Next, find a 3 unit property and purchase it using an FHA loan. Live in it for 1 year, then refinance out. Then find a 2 unit property, live in it for 1 year, then refinance out. Then get your single-family home using another FHA loan. This is a great strategy because it allows you to purchase a total of 9 rental doors and a single-family home while only coming out of pocket with 3.5% down for each property.

If you want to send your wealth-building into hyperdrive, find properties that need a lot of work and use the FHA 203K loan. This allows you to force appreciation into the properties.

Best of luck to you!

Hi @Jamila Thompson 

I agree with @Rui Costa. Owning a Townhouse as an income property comes with the added expense of HOA fees. Although one could argue that this could be offset by not having to pay the cost of snow removal, lawn care etc (for HOAs with low fees), I'm still reluctant to say it's a good idea due to the fact that HOAs are often unpredictable. They could at anytime charge additional assessments for various reasons in which could kill your cashflow. On top of that, they could add restrictions on non-owner-occupied units within the complex. I'm really not a fan of condos/townhomes as income property. If you're not planning on living in the property, my advice would be to stick with multi-family properties. Preferably 3-4 unit properties for your first few.

Hi @Mayne .Williams

Welcome to the area! As you've seen, that price range isn’t going to get you much by way of 4 unit properties in CT. But you can find some 4 unit deals for around $200k+. So you’re not that far off. I’d suggest looking in Waterbury. That’s where you’ll find the lesser expensive properties. Meriden would be next on the list. You should be able to find a decent deal on a 4 unit property for around $250k-$275k.

As for how Covid has affected the real estate market here… We’re in a very active market. Like many other parts of the country, I attribute this to low-interest rates coupled with more people desiring larger living quarters since they’re going to be living, working and schooling from home. Another contributing factor is the mass migration of New Yorkers to the area.

A little fun fact about Meriden. I was checking out some stats last week and found that Meriden 3-4 unit property values are up about 30% (year-over-year). I do expect a little slowdown when banks are allowed to start foreclosing again, but overall, I think prices will continue to rise. So get in as soon as you can.

I don’t think that was factored in.

Waterbury has high taxes among other issues. But I have to agree with the article. Waterbury is a small city (or a suburb with a city feel as they called it) that has a very low housing cost relative to pretty much every other city/town in CT. 

Hi @Abel Rodrigues

Have you spoken to a loan officer yet?

Congrats on your first project @Hamlet J.

In order to determine if you should ask for a reduction, we'd have to know what your ARV is and how much you have it under contract for.

That's awesome @DANIEL BROWN

My advice from this point is to start creating systems for EVERYTHING. Recall what you did right and what you did wrong in the purchase process. Write it down and create systems on how it could have been done better. Going forward, look at how you handle different tenant issues that arise. After it's over, take note of how you could have handled it better and create a policies & procedures manual. Before you place your first tenant, check out the forums and the blog to find best practices. Add that to your manual. After you place your first tenant, find ways that you can tweak your tenant screening process to make it better and more efficient. These are just a few examples of things you should systematize. But you really should be systematizing EVERYTHING!. This makes it easier later in your investing career when you decide that you want to outsource your property management. 

Waterbury gets a bad rap. But it really depends on what you're looking for. If you're looking for appreciation, look elsewhere. But if you're ok with zero appreciation and cashflowing properties at a low entry price, Waterbury might be a good place for you to further investigate.