All Forum Posts by: Ryan Tessier

Very nice deal. I just got a 9bed/3 bath Triplex in Derby, CT with similar numbers. Bridgeport has nice rents but the crime in the area has been putting me off from investing there. Have you had any issue with crime or finding quality tenants?

The Property I ended up finding isn't commercial technically 3 family residential. Not sure if it makes a difference, but if your lender can go 80% LTV on a 30yr Fixed Mortgage would you mind PMing me their contact info?

Spent most the winter looking for a good investment but the markets been very slow. Finally found a very well maintained three family with a 10% cap rate, offer has been accepted and we're moving forward to close. Price is a little high for my budget, but I have a broker who promises to get me 80% LTV on my mortgage, which would leave me plenty for closing costs and cash reserves. The problem? 7% Interest rates. This broker does alot of commercial loans and I was expecting a higher than prime rate because of it, but my income/credit are perfect (which apparently doesn't matter much in commercial loans).

Is this rate too far out of the ball park? Property will still cash flow but will take a sizeable chunk out of net income. Is it a viable strategy to close and refinance to a conventional after building some equity? We're moving quickly to close and I don't know anyone else who can do 80% LTV 30-year fixed.

Maybe I’m doing my numbers wrong but $250k cash can be leveraged up to $1M loan and invested in a multi family/small portfolio at 6% cap rate to achieve $5k a month. Easier said than done but 6% cap seems average to me. But again maybe I’m missing something.

I’m interested in buying vacant lots of land that are wooded or unlevel and clearing them and making them ready to develop and selling them. Is this a viable business strategy? I feel like the cost of entry for this would be low but I’m also not sure that a developer would pay more for the land since they usually have the means to clear it themselves and what needs to be cleared is usually determined by the specs of the house that is going to be built which I won’t have.

Is anyone doing this and what should I look out for?

@Jeff Bousquet

Definitely a lot of poverty in Waterbury. If there’s good parts of town it’s not what the city is known for. I’m not most familiar with it so I could be wrong but I’ve looked through the area for investments and I’ve noticed rents are significantly lower than other areas. If you’re going to take the risk of investing in a city with high crime I’d go for Bridgeport or New Haven before Waterbury. But I invest primarily for month to month income.

@Sam Sams

Right now I’m investing in the valley area. Derby and Ansonia. New Heaven, Waterbury and Bridgeport can all have good deals but the taxes are higher and so is the crime. I see a lot of options for Multi-Family housing in Bridgeport that appear to have good numbers but I wouldn’t invest in because I wouldn’t want to be walking through the area at night. So my concern would be the type of tenants an area like that attracts.

@Eric Mcginn

According to my Fire Marshall, and this may differ depending on your state and municipality, if the building is three stories or less you only need one fire rated means of egress. Doesn’t make much sense to me or any of the contractors I work with but it’s coming straight from the horses mouth.

@Eric Mcginn

I’ve had this same problem at my first three family. Your best advice would be to ask the fire Marshall directly, mine was very resourceful in helping me get my building to code.

The fire codes are obviously different in our states but if I were to build a fire escape coming off the third floor It would need to extend 10 feet past those windows before descending if those windows aren’t fire rated. I’ve found a much cheaper option to be taking the existing stairwell inside the house and fire eating it instead. Double layer sheet rock, egress lighting and fire rated doors.

Good Luck

@Molly Mayeux

Right now I’m doing buy and hold in the valley area. And looking for my second deal in Fairfield/New Haven counties. Taxes and crime aren’t as high near Ansonia as some of the other parts of the state and rents are on the rise.