What you need to know about investing in a Multi-Family in Danbury CT
I've had a number of questions recently about my listing at 20 Griffing Ave. I figured it might be useful for someone thinking about dipping their toe into real estate investing. Here's some things you need to know about the world of multi-family homes in Danbury CT:
About 90% of our multi-family inventory was built between 1880 and 1930. Our inventory is older and unless you are lucky enough to find one who has has a contractor for an owner who did a major remodel at some point, there may be structural work involved. Even if the structural condition of the home is good, it will probably require some work. There are exceptions, but I'm generalizing.
67% of all multi-family homes sold between January and June 2010 were Bank Foreclosures.
The average prices have come down because these sales are distressed, but also because rents have really come down. Even though they have come down, Danbury still has a reasonably stable employment picture - better than most areas of the country- and rents are really high. I have had people from NY City come to Danbury and complain about how expensive it is to rent here. A small two bedroom usually rents for at least $1,000, but can easily reach $1,300.
- About 1 in 4 of the sales in the last 6 months are cash. And when the seller is a bank, they prefer cash. I have had clients who bid $30k more loose because the competition had cash.
- About 1 in 6 of the properties approximately have sold for more than the asking price, so it is important to know your prices.
- There is a lot of inconsistency in the status of some of these homes (is it a legal two family or a legal four family?). This takes time to sort out and requires a good attorney.
- An insect inspection should be a part of any multi-family purchase because I am hearing more and more stories about bedbugs and other fun stuff (yuck, I know!). Bedbugs are coming back across the Tri-State area if you watch the NY news!
Many times buyers think they can contact the homeowner directly to purchase a home that is being foreclosed on. Most multi-family foreclosures in Danbury are owner occupied, not investors. Unless the seller has agreed to cooperate with a short sale, they have little to no control over anything except how long they stay in the house (the priority in many cases is either to modify their loan to lower the payment and stay in the home, or simply to stay as long as possible). Most multi-families that are bank owned are listed with Realtors. I have seen some cases where the buyer has waited 2 years for the property.
List of multi-family homes for sale in Danbury CT
If you think you might like to purchase a multi-family in the Danbury/Bethel CT area, I'd be glad to answer your questions.
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