CT Multi-Family Real Estate – How To Make Money On Your Investment

Connecticut (CT) Multi-Family Home Investment

Whether you are interested in buying a multi-family home in Connecticut to live in one unit and rent the others or purely as an investment property, this type of property provides great investment potential. However, like any other investment, an investor needs to carefully consider each available property and make an informed decision as to whether or not a property is the right one for the investor to purchase.

Shop for Mortgages

If you will need to borrow money to buy a multi-family home in Connecticut, this is your first step in the investment process. Shop around at different lenders to determine how much you can borrow and at what rate. By becoming pre-qualified for a loan, you will know how much you can spend and you can get approved for a loan more quickly when you are ready to buy. Finding the lowest interest rate possible is just one part of your mortgage decision making process. The right loan package can help make your investment as profitable as possible.

Run the Numbers

Once an investor finds a multi-family in Connecticut of interest, he or she should carefully look over the financial numbers of the property. Look at the price of the property and consider how much the mortgage payment will be for the home. Next, look at the amount of rental income that the property will bring in each month. Using this information, the investor will be able to see how much of a profit  the property will make each month. This number can then be used as a basis for comparison with other multi-families in Connecticut.

Location, Location, Location!

A property is only as good as the neighborhood in which it is located. In fact, in many cases the neighborhood is more important than the property itself. In the wrong part of town, a great building can be a bad investment. However, in the right part of town, a shabby building can be a good investment if the investor has the money to properly renovate the property. For a multi-family home, an investor is looking for a large supply of renters who will need a place to live. The proximity to Connecticut colleges, hospitals, government buildings and other large employers can help to provide a steady stream of renters for your multi-family.

Allyn Associates Realtors proudly provides residential and commercial real estate services in Ledyard CT, Groton CT, New London CT, Mystic CT and surrounding eastern Connecticut towns.