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Off-Market Duplex in New Britain, Connecticut - purchase under market price and minimal renovation
Remember the deal of the duplex in Meriden that we published here two weeks ago? This is a letter of intent, because no one likes to waste the time. And in the letter we already deposited a preliminary amount for progress and we received 10 days to enter the contract at an excellent price
The significant advantage of this transaction is that on the face of it the required renovation is minimal - a few thousand dollars per unit, compared with the renovation of the 33 required for a property in Meriden.
The price we were able to obtain for investors in the negotiations included the costs of the Wholesaler and our full support until the closing of the deal!
100,500 dollars only includes closing expenses! (Estimated cost according to closing expenses)
CAP Rate - NOW: 9.4%
Total gross annual income for the asset at present: 19,740 USD (see details of expenses and net income)
NOI: $ 9456
Proforma - After raising rent:
Pro-Forma CAP Rate: 12.2%
Total annual income to the property after renovation and rental increase: 22,800 USD (according to 950 dollars per apartment)
Pro-Forma NOI: $ 12228
See below comparative assets for the rental and sale area
Significant advantages: gas heating and tenants pay the expenses!
Zillow's value of the asset according to similar assets in the region:
The property is two stories high and each floor has a unit of 2 rooms.
On the first floor there are wonderful tenants who are in an annual contract!
The retired man of the army, his wife works
The house looked pretty good.
Tenants on the first floor are paying $ 795 dollars per month. Not bad given the unit price of about 50 thousand dollars!
From a comparative examination, renting in the area to 2 rooms is significantly higher - about $ 950 (look at the CMA we have attached - average rent in the area) - a great opportunity to raise rent later on after minor updates to the apartment!
In the lower apartment if the tenant leaves, our estimate of a basic renovation in the amount of 3000 dollars in preparation for the next tenant, but as stated on the lower floor there are good tenants who are likely to stay longer.
On the second floor there is a Section 8 occupant which is an understatement not the most clean, but as is known, the advantage of Section 8 is that the government pays rent as a clock and above the usual - and therefore now receive in this apartment 850 dollars instead of 795 dollars, also the potential name is 950 dollars!
The tenant is currently in contract month by month and it is an advantage that if we want to get it out we are not bound and it is possible.
The owner renovated the apartment on the second floor about a year ago with a new floor, kitchen, etc. And unfortunately this tenant broke one of the kitchen cabinets (look at the video) - definitely sucks but now we would recommend leaving it at the initial stage and continue to receive government rent each month, It is not a problem to replace and arrange the place and to put an ordinary tenant at a market price - this tenant is already used to the situation, and a new tenant will want us to renovate there already.
Recommended renovation: In principle, let's say, and the tenant leaves tomorrow. What is recommended to do there at the moment is only Color, carpet replacement, kitchen repair and cleaning - rough estimate of about 3000 dollars. As you can see in the video, the previous owner installed a new floor, arranged the kitchen and overall renovated there nicely.
Pictures of the property after its last renovation:
Big advantage - you can get from New Brittany to Manhattan in less than two hours;
Winter Tour in the beautiful and historic buildings of New Britain:
Festival - Little Poland - in New Britain:
Thousands of people came to Little Poland in New Britain, Connecticut, the celebrity Polish culture, music, dancing and cuisine.
Things you did not know about the state of Connecticut:
Connecticut is the fourth most densely populated country in the United States. Known as the state of the constitution.
Although technically part of New England, Connecticut is often mentioned as a trio of New Jersey, New York and Connecticut states.
The most beautiful places to visit in Connecticut:
The most expensive and prestigious places in Connecticut:
Many do not know that Connecticut has the most expensive real estate in the United States and the most sought after. Here are the 10 most expensive cities in Connecticut - of course these are not the places we invest in, but it shows you the strength of the country. Some of these areas are located minutes from New York City and of course this directly affects the value of the properties.
After signing a contract with us, you transfer a deposit to a lawyer to serve as a preliminary deposit to enter into the contract with the seller
We condition the contract on a thorough inspection of the property - inspection
We will ask the seller 10 days to decide whether we are moving or not
If you decide not to proceed, you get the deposit back, minus the cost of the test
If we decide to continue the transaction, you will continue forward with our accompaniment
The time given to us to move forward in the deal is set - the price at which the asset will rise again for sale to the free market in ten days by the broker will be about 10 thousand dollars
The price includes full accompaniment until the property is owned by you and is under management company (if you are interested, we can also take care of you to open a company etc. at a reduced cost) Expected transaction costs: