All Forum Posts by: Chris Puglisi

Hi Ethan, 

I am not familiar with your market and how competitive it is but personally, I would look at your ROI before the cash flow number. If you are able to find a deal with 22% ROI you are doing pretty good. In the example you gave, you cash flow is 80% higher than your target and but cash flow is only 3% lower than your target. I would take that deal!

Hi Bryan, 

You might be able to find a deal that meets the 2% rule outside of the cities but it is very uncommon.  A much better chance to find them off market but still difficult.  I typically look for 1% and even that could be a stretch sometimes,  especially when looking in more of the suburban areas.  Are you looking to invest in a certain area of the state?

Hi Chuck, 

I would say keep it and use the line of credit towards down payments on other properties.  It looks like the monthly cash flow could be strong and if there is strong demand for similar house why not use that for mail box money while you build up your portfolio? 

I think the argument could be made that it is better to flip during the winter.  Contractors are generally less busy and you will probably find that the labor is cheaper.  Of course, weather is always a factor.  In CT, every winter is different, you may get a winter that it snows once a week or one that you only get one storm. 

Hi Alexander, 

Thanks for the post and even more important, thank you for your service. I am house hacking a duplex now and very happy with my decision. I used an FHA to get a low down payment then used the cash I had to do some updating and now going to refinance out of the FHA to get rid of my PMI. I am not familiar with any markets in SC but, in my market, mixing the BRRR (haven't repeated yet) strategy with house hacking is helping me grow quicker than if I just bought a turn key.

I don't want to make things more complicated and add in another option but have you thought about putting some time and money into the property to bring up the value and rents then pull some of the money out to use towards your flips?  I am not sure what your market comps look like and how much work it needs but if you could get the value up to $150,000 with minimal cost and some work, you could pull out the $25k you plan on making if you just sold it as is.  This way you get the cash to put into future flips and you still have the cash flow coming in.  

I agree with Thomas. Look at the cash flow and cap rate to get a true read on the value of the property. As you mentioned, commercial properties are generally valued based on the income they produce rather than their assessment.

#2- $1m down payment on $4m apartment building at 8% CAP. I would be very happy living off of that cash flow.

Join me and other BP members for the Wallingford Real Estate Meet-up.  This is event is not just for investors in Wallingford, but for all of New Haven County.  We will be meeting at Starbucks in Wallingford on October, 26th at 7pm to network and help each other build our real estate businesses. Whether you have been investing for 50 years or have yet to close on your first deal, this event is for everyone.  Whether you have a deal, looking for a deal, flipping, or holding you will benefit from this event. Share experience and stories while learning and helping others. This event is open to everyone and feel free to pass this along to anyone you know that is interested in real estate.

Wallingford, North Haven, Cheshire, Hamden, Meriden, Middeltown, North Branford, East Haven, New Haven, West Haven, Branford, Milford 

It was a big manufacturing town which has taken a hit but they are starting to turn some of those old factories into apartments and offices.  The commute wouldn't be too bad to Hartford, New Britian, or Waterbury.  I am under contract on a duplex not far from the mobile home park that is for sale.  My guess is that is why you are asking.