All Forum Posts by: Filipe Pereira

Hey @Nick Koukidis, @Luke Carl mentioned great points. While I don't have any STRs, I do know a few people that do in Connecticut. They tend to buy near entertainment venues- I.e. the casinos where people will be attracted to and may spend a few days / nights for a conference, event, etc. 

Even shorter than that and you may consider near the airports. I have a home in Windsor Locks and often thought about short term renting it to travelers. 

Hi @Minsu Kim, while this can be very profitable and can also be a huge PITA when tenants don't claim ownership over who broke what. 

Bigger than that is the potential ordinances or laws the town that your property is located in has. For example, in some Connecticut towns, there are zoning laws that prevent 4 or more people of different last names (basically saying different families) living together in one home. The goals of these laws are to prevent rooming houses from popping up all over town. 

Ideally a 2-3 bedroom house near access to public transportation / infrastructure have been the easiest to rent.

Hey @Jorden P Dupont, you have a unique opportunity here and it's important to see that. @James Carlson gave you some great advice, and I echo most of what he said. 

I think it's also important to realize that while this area may be a "c" area, it's a "C" area by Manchester standards, which is still far better than most "C" areas across Hartford County CT.

The siding is basically a non issue unless you plan on eating it. I had termite damage in my 1890 home and had to replace a sill plate. Not the end of the world, and very doable. As for the K&T, that can be pricey, but given that it's only 2 floors, the electrician can usually feed from basement and from attic. On 3 story properties it becomes even pricier. 

It's really going to come down to price. I was able to get a massive price reduction on mine (60K) so it made perfect sense to live in flip mine. Good luck!

7.5% is almost twice the going rate right now for investment loans @David Constant. 

I like your plan, but he probably won't, unfortunately, lol. Try to find the seller's angle. Find out what they want. Everyone wants something. You may try pitching him to take a longer deal because of the potential tax implications. If he has held the property for any significant amount of time, he's probably going to pay capital gains tax on it, so by holding the note for a longer time, he may be able to spread out the tax liability as well. 

Just some food for thought. 

@Ryan Hurst I believe that someone with a good contact list and decent systems can manage 10 to 15 units by themselves with a full-time job. Obviously this number changes based on each person's life circumstances, whether they have other commitments to attend to, Etc.

For most people property management is a luxury, not a necessity. Especially because most people will never own more than 5 to 10 units. However, people are obviously free to spend their money however they prefer to, so who are you or I to tell them what to do or what not to do. Some people spend money on property management to relieve themselves of the headache, or because they are too far away. Totally sound reasons. Heck, I even know of a couple people who live next door to their rental and still hire property management out!

There is no one size fits all approach to property management, thankfully. As for liability, the buck always stops with you. If the PM did something negligent, they should absolutely own up to it, but if it was something that just happened because the house is old, well, it would be hard to blame them for that, unless you specifically told them to have it addressed previously.

Hey @John Semioli, @Justin Anderson gave you some great advice! Referrals and your network are the best place to go when seeking out this kind of stuff. 

As the owner of a CT property management company that doesn't service New Milford, I recommend pro property management. They're just down the street from you in Brookfield, Connecticut. Adrianne and her staff have been in business for quite some time. If they can't help you, they may know someone who can! 

Welcome to BP @Jacob Slomski! 

There's a few "regulars" here that you will see often, and new members joining everyday. I work the central/north central CT area as both a property manager and licensed agent and specialize in tenant management / placement. 

Reach out anytime, I'd be happy to share with you a bit about myself, and how rentals ultimately got me to quit my full time job. 

And yes, I agree. Manchester and New Britain are great starting points...when there's inventory! Things are tight right now, and it's not just in Connecticut. 

Seriously, reach out sometime and stick around for a while!

Hey @David Constant-
I just sent you a DM with some thoughts, but I'll share some here as well. I will buy ANY deal if the seller allows me to make the terms of financing, LOL. 

Why? 
Because what you buy something for is not nearly as important as to HOW you buy it as long as your loan is long enough and interest rate is low enough. 

Make sure you understand that to get 900 for a 1 bed unit in Rockville, it's got to be pretty nice. That seems to be the upper end of pricepoints, where the average is probably closer to 850. On 4 units that's a 200/mo gross difference, or 2400/ yr.

I think your numbers are off for your PITI payments. They sound very low. I didn't do the math myself, but I wouldn't be surprised if it's closer to 2k/mo with a loan balance of 230k +/-. Interest hurts. An insurance will cost more as it's a commercial property (over 4 residential units).

~$4800 after raising rents double check your numbers here.

After accounting for property management, capex, vacancy rates, etc., I'll still be cash-flowing ~$1000 now and ~$2000 after raising rents. I'm thinking I force appreciation by renovating each unit as I turn them over in the next 1-3 years and then refinance to a traditional lender in order to pay out the current seller before the 5 year balloon payment comes due. Make sure the market will support the ARV. there may not be a whole lot of comps in your market. 

Does this seem like a good plan? Any feedback or advice? Am I missing anything?

I like the plan, but i'm concerned with some of the numbers. If the numbers are right, this is a solid deal for the Connecticut market at this time and it will be hard to go wrong on it! 

If he doesn't pass the screening process, then sorry, but he can't live there. There are standards that need to be maintained for the safety and comfort of ALL tenants. If he begins living there then that is a lease violation in most cases, at which point the current lessee may be the one to suffer. If they really are a "good" tenant then they won't harbor people who shouldn't be living there.


"Good" tenant means more than just "they pay their rent on time". 

I'm sorry, but is there any reason you don't want him on the lease or being used as a co-signer @Iesha Padilla? If yes, then be worried. If no, then proceed as you normally would.