All Forum Posts by: Kevin Hunter

@Yoshi Yam, welcome to BP.  Lots of great people to help you get started.  For CT specifically, pay very close attention to the mill rates (property tax).  They vary from city to city and in a very big way.  As a rule of thumb, the big cities like Hartford, Waterbury, Bridgeport have high property tax rates relative to some of the smaller, more rural areas.  This will have a large impact on your piTi numbers in your underwriting.  

You can download the entire list from the State of CT website and compare area by area.  

Good luck and reach out with more specific questions you might have!

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $600,000
Cash invested: $120,000

Contributors:
Michael Ablan

10-unit, multi-family property in an area I already invest. 8 of 10 units have been interior rehabbed. Exterior rehab, siding and windows, is still required.

What made you interested in investing in this type of deal?

I already own investments in that area and have an established team in place. The investment consists of three building, 2x 3-familty units and 1x 4-family unit. 2 units need rehabs when current tenants move out.

How did you find this deal and how did you negotiate it?

Off market deal that I was approached on by someone I have done deals with in the past. Negotiation was pretty seamless. He offered a price, it worked for me and him both, so I took it. I did have to work subject-to current financing rate with the lender, but once that was settled it all worked out.

How did you finance this deal?

Commercial financing with 20% down. I was able to work a subject-to deal on the financing which made the price palatable. It wouldn't have worked at current interest rates. This was my first deal using commercial lending as opposed to retail lending. Took a little longer to close than expected which would have also hurt, considering the pace with which interest rates were sky-rocketing at the time. Another reason the subject-to loan was so helpful.

How did you add value to the deal?

I have rehabbed one of the remaining two units needing work.

What was the outcome?

Property is stabilized but rents need to be increased for a few units.

Lessons learned? Challenges?

I should have negotiated a bit more strenuously on the exterior rehabs. All three properties need siding and new windows. We did settle on splitting the cost of one of the siding jobs, but I should have asked for a bit more. The curb appeal really lacks. Although I wont see a rent bump from the exterior, I will see shorter vacancy times. Once a prospective tenant sees the inside, they are sold. Getting them inside has been challenging due to the lack of curb appeal.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Michael Ablan of Marble Key Properties.

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $600,000
Cash invested: $120,000

Contributors:
Michael Ablan

10-unit, multi-family property in an area I already invest. 8 of 10 units have been interior rehabbed. Exterior rehab, siding and windows, is still required. The investment consists of three building, 2x 3-familty units and 1x 4-family unit. 2 units need rehabs when current tenants move out. I was able to work a subject-to deal on the financing which made the price palatable. It wouldn't have worked at current interest rates. This was my first deal using commercial lending as opposed to retail lending. Took a little longer to close than expected which would have also hurt, considering the pace with which interest rates were sky-rocketing at the time. Another reason the subject-to loan was so helpful.

What made you interested in investing in this type of deal?

I already own investments in that area and have an established team in place.

How did you find this deal and how did you negotiate it?

Off market deal that I was approached on by someone I have done deals with in the past. Negotiation was pretty seamless. He offered a price, it worked for me and him both, so I took it. I did have to work subject-to current financing rate with the lender, but once that was settled it all worked out.

How did you finance this deal?

Commercial financing with 20% down.

How did you add value to the deal?

I have rehabbed one of the remaining two units needing work.

What was the outcome?

Property is stabilized but rents need to be increased for a few units.

Lessons learned? Challenges?

I should have negotiated a bit more strenuously on the exterior rehabs. All three properties need siding and new windows. We did settle on splitting the cost of one of the siding jobs, but I should have asked for a bit more. The curb appeal really lacks. Although I wont see a rent bump from the exterior, I will see shorter vacancy times. Once a prospective tenant sees the inside, they are sold. Getting them inside has been challenging due to the lack of curb appeal.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Michael Ablan of Marble Key Properties.

@Aaron 

@Aaron Ver, as an active duty investor there are a couple more questions I believe you need to answer:

1. What are your long term military goals?  Are you staying in for a while or is this your last move?

2. Are you under BRS or did you get in under pension timeline?

3. Do you need the cashflow right now so support your current lifestyle or other fiscal responsibilities?

4. Do you want to build a long-term income providing portfolio or do you want to "trade up" for now?

All of these answers will help provide a bit more clarity as to your situation so we can help provide some suggestions.  

Good luck, Kevin.

@Kody Bybee, thanks for taking the time and then sharing.  I appreciate it.  Interesting stats for sure.  I wonder if those will continue to trend, or we will see a shift as vaccinations ramp up and people forget about the last year??...

Thanks again.

@Arian Hoxha, welcome to BP.  Lots of investors from CT here.  I invest in Fairfield county mainly, but am always looking for opportunities.  Good luck!

@Mark Leclair, I have a portfolio of small multis in Fairfield County.  Let me know if you ever come across anything down there.  Thanks.

@Stefhen Offutt, welcome to BP.  Tons of great people to learn from here and all kinds of great information.  The military presence here is robust as well.. Good luck!!

@Shane Hutchins, @David Pere is absolutely right.  The hair on the back of your neck should be standing up a bit when thinking back to that discussion.  It got all of our attention for sure.....

@Mitchell McKinney, congrats on the purchase.  You will find, IMO, you will never regret this decision.  NoVA is a fairly insulated area during market turns, and the military market in the area will keep your place rented full time.  Go back and listen to @Russell Brazil podcast where he discusses investing in A Class areas.  That will reinsure you as well.

Good luck!