All Forum Posts by: Joseph Salzillo

Connecticut has been known to be a difficult state to invest in due to high taxes, favorable tenant laws, and overall decline in population.

However, I've decided to invest into this state anyway. There are a lot of pockets in Connecticut in where small multifamily properties hit the 1% rule and purchase prices can range from $150k-$300k in these towns (Bristol, New Britain, Meriden, Wolcott, Hartford, Plainville, Southington, Middletown, Cromwell, Berlin, etc.). Additionally, a majority of these towns have experienced 7-10% growth in appreciation on average between 2020 and 2021 while still having strong rents.

The key to acquiring and operating successful rental properties ANYWHERE is to have an excellent team with you. I work with out of state investors looking to get into small-multifamily deals and help build their systems and teams here. The property management team we work with has paid out over $250,000 in UniteCT funds to their owners for tenants that need rental assistance from the state. The contractors we have are reliable from general handymen to fully-licensed GCs.

Shoot me a message if you'd like to chat, I'm always happy to help other investors as well!

@Chirag Gulati commercial loan through Trust Bridge Lending. Brian Desfosses runs the lending practice and he is a closer so I use him on income properties. For the commercial loan, terms are 30 year amortization, 20% down (4-unit and below), interest is 3.85% with 4 points buydown, and origination charges. All-in on the property to close was $58k with another $15k in reserves to help us sleep at night.

@Jeremy Komer it's tough to say; totally dependent on the area. Since rents are generally less in the midwest than the coasts, but materials cost around the same, it's usually good to estimate maintenance costs higher for properties with less rent. Once you get properties in your farm area, you'll be able to hone in on what the actual values are!

@Jeremy Komer 10% including both maintenance and CAPEX, this property is definitely exceeding the maintenace threshold right now but when we are done rehabbing the units themselves the maintenance should be around 5%. For CAPEX, we are saving to prepare and replace 2 boilers in a few years, foundation is good, and roof is half it's useful life.

@Evaristo Urbaez I totally understand, there are a lot of cash buyers taking up small multis all over the place. The key is to keep updated on MLS and take action as soon as you know a good deal comes up. Once you see a property pop up that is in a good area and the rents are strong, get ready to be the first one to put in an offer!

@Brandon Rush thank you Brandon!

@David Bilandzija nope! However, we're still making mistakes but learn a little bit more each time a property is purchased

@Anita Chu are your tenants currently paying on-time? If they are good tenants and pay on time I would just slowly raise rents to market. For nonpaying tenants, try cash for keys first, engage UniteCT to get government assistance, and if the first two fail submit a Notice to Quit.

@Brent Kane this was actually purchased from MLS; they listed the property originally at $210k and the compa were showing around $240k at the time. We knew what our bottom line was and what returns to expect so we put an offer at asking with escalation up to 231k.

@Chris Webb you'd be surprised! There are a lot of neighboring towns to Hartford that regularly hit the $70k-$80k/unit mark in C+/B- class locations with rents ranging from $900/mo to $1250/mo on average. The downsides to CT are population decreasing and high taxes, however, there are still deals to be found with great teams in place!