All Forum Posts by: Joseph Salzillo

Thanks for the shout out @Samuel Eddinger!

Cesar - happy to help you as well. I work with many out of state investors between NYC/BOS and my brokerage brings in a lot of small multi off-market inventory.

Thanks for the shout out @Samuel Eddinger and @Gaetano Ciambriello!

Ryan - happy to help you out. I actually started investing and lived in the Greater Boston area so I have a lot of connections out there. I've helped previous colleagues in MA purchase investment property in CT. Feel free to reach out if you have questions and want our off-market inventory lists.

Thank you very much as always, Sam!

Hi @Jeff Sacco, I service New Haven, Fairfield, and Hartford counties primarily for investments. Also, @Samuel Eddinger and his company Ironclad service my personal portfolio as well as the investors I work with. Happy to chat with you to see how I can help. Brandon is also a phenomenal Realtor in the area and can help as well, we are good friends!

@Samuel Eddinger second Brandon's post; thanks Sam!

Thanks Brandon!

Hi Keith - where are you based out of now if not in CT? I would say it hasn't been easy to find deals but most of the deals we are doing now are either through referrals or networking in some way. For flips specifically: we place an offer on every single house we look at both on or off market. There's a number that works for every house so long as you are confident in your rehab numbers.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Southington.

Purchase price: $358,000
Cash invested: $20,000

This is a duplex house-hack that my clients closed on in a lovely B+ class town in central Connecticut. They are going to turn the 2/1 on the first floor into a 3/1 by adding another door with a hallway between two rooms which will bump market rents from $1550/mo to $1800/mo for that one unit. There will be GRI anywhere between $3600/mo to $4000/mo with this property which cashflows day one after they move out from the property, so long as they self-manage.

Lessons learned? Challenges?

As if this isn't enough, the property itself is Zoned I-1 industrial, AND comes with a large plot of land with a significant amount of frontage on the road. With an approval of a variance with this town, they should be able to subdivide that vacant plot of land and either sell if off or build another structure on it while retaining I-1 zoning! That's a huge upside potential that needed to be considered when placing an offer!

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Southington.

Purchase price: $358,000
Cash invested: $20,000

This is a duplex house-hack that my clients closed on in a lovely B+ class town in central Connecticut. They are going to turn the 2/1 on the first floor into a 3/1 by adding another door with a hallway between two rooms which will bump market rents from $1550/mo to $1800/mo for that one unit. There will be GRI anywhere between $3600/mo to $4000/mo with this property which cashflows day one after they move out from the property, so long as they self-manage.

As if this isn't enough, the property itself is Zoned I-1 industrial, AND comes with a large plot of land with a significant amount of frontage on the road. With an approval of a variance with this town, they should be able to subdivide that vacant plot of land and either sell if off or build another structure on it while retaining I-1 zoning! That's a huge upside potential that needed to be considered when placing an offer!

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $216,500
Cash invested: $40,000
Sale price: $320,000

Re-grade land in back of house and provide new landscaping across plot of land.
Replace roofing on back end of house where active water leak occurred.
Two full bathroom gut jobs with custom tile showers and radiant heat flooring.
Refinished the hardwood flooring and ripped out carpet across house.
New GE 4-set appliances (Refrigerator, Range, Microwave, Dishwasher).
Granite countertops in kitchen and bathrooms.
New finish electrical and finish plumbing across house.

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

We have begun flipping houses and using the profit from flips to fund long term rentals.

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

I found this house on the MLS and it was sitting on market for awhile; ultimately ended up negotiating the price with the bank after some back and forth for a few months.

How did you finance this deal?

This deal was funded via private money: the lender funding $255k at the closing table ($216,500 purchase price, the rest went to buyers closing costs and construction) so we got back ~ $35k to purchase the house. The loan costs 2 points of the full amount, 10% interest-only, and 1-year balloon with a 30-year AM schedule.

How did you add value to the deal?

We took a house that was unlivable, and added some custom features that a specific buyer of mine wanted. They were willing to pay more on the construction side to customize their re-development, understanding that this house comped out to roughly $320k ARV. The buyer actually had the house appraise to $327k when they purchased.

What was the outcome?

We made a $48k profit to sell this off-market after all expenses.

Lessons learned? Challenges?

There were a lot of issues with the bathrooms that we did not expect. Rot was found on many of the joists when we opened up some walls, so we ended up having to pull plumbing and bathroom rehab permits with the town to make sure we were re-building the bathrooms properly. This project ended up taking about 2 months longer than it should have because of this, but we accounted for this in our holding costs.

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

I was the real estate agent representing us on both the purchase and sale!