Hello friends,

As you have probably noticed, the number of good deals is small and must be found in tweezers.
The current deal is a duplex in a developing city in Meriden, Connecticut.
In the e-mail and on the website we describe the advantages of investment, the advantages of the region and the possibilities of profit.

Many of you turn to me every day to ask if there are any new deals to enter.
As you have seen, since the last transaction in April, which was really an excellent transaction below the market price, it has been over two months, and there have been no deals that I believe are good.
To my delight, after many searches, I found a deal that I think is very good.

Nature of the transaction:

First thing as you know in real estate - someone's trouble is someone else's advantage. The property is sold by a divorcing couple (not us). They tried to advertise it on the market at a higher price, entered into a contract, took down the advertising but the client was unable to get a mortgage. Due to the couple's urgency to sell, get the funds and split the money, they do not want to go through this process again and are willing to offer the property at a discount for a quick cash transaction.

So what we are talking about here - buying a duplex of 2 units at a price lower than the market price of 102 a thousand dollars. (This price will only be possible for the next few days because we do not have a contract on the property.)

The first floor is currently leased at 700 USD, and the second floor at 650 USD. Total 1350 USD Rentals.

(15.8 percentage of gross yield)

Total cost for a renovated property with wholesale fees, closing fees, attorney, amount reserved for eviction of tenants if necessary, insurance, title, inspection and our accompaniment throughout the process until purchase - $ 138,500 

Estimated rent after renovation - $ 2150 per month - ie 18.6 percent gross!

The value of the property after the renovation according to Compasses - 180 thousand dollars to 215 thousand dollars. (See comparative assets below)

A gross profit opportunity of between 40 thousand to 75 thousand dollars gross in the clip! (Before brokerage fees, sales taxes, etc.).

The net return of this property per year is 17 thousand dollars

NOI - $ 17,000

Worst scenario:

The minimum price that a broker will sell the property will be at a cap rate of 9.5 percent - that is:

NOI / 9.5% cap rate = 178K

Net after sale according to the minimum price: 165-170 thousand after broker fee expenses, closing expenses, etc.

Also the deal is even more excellent for long term holding - the potential for property improvement is that on the first floor only cosmetic renovation is needed, and on the second floor we will build two more rooms that will significantly increase income - which will bring us about 12 percent net rent.

Expected breakdown of renovation costs:

So how does the deal take place?

1. After signing a contract with us, a cash deposit is transferred to a lawyer who will serve as the initial deposit to enter into the contract with the seller
2. We condition the contract on a thorough inspection of the property - inspection
3. We will ask the seller 10 days to decide whether we are moving or not
4. If you decide not to proceed, you get the deposit back, minus the cost of the test
5. If we decide to continue the transaction, you will continue forward with our accompaniment

Location: Meriden, which has undergone accelerated development in recent years

The big advantage of the city is its location - about a year ago a new train station opened there that leads directly to Manhattan in about two hours!

It also opened a new central park (like a small central park) that received rave reviews (you can see the Google reviews in the photo) - many festivals are held in the park, and next to it the municipality has turned buildings with housing for the needy into modern condo apartments with pool, gyms, guard, etc. Of a high standard

Meriden Green's new park

As you can see, the new railway station is part of the improvement of the entire area and is adjacent to Meriden Green Park and the new condo buildings in the area

The city site tells about the new park and its activities

Meriden is considered a leader in aerospace engineering and includes companies in this industry who work with the US Army and live in, among others, aviation engineers and blue collar workers working in these companies.

Below is a list of the leading 30 airlines that are located in Meriden

Meriden is only a 22-minute drive from Hartford - the capital of Connecticut, which is also the insurance capital of the United States with 17 Fortune 500 companies with a combined value of hundreds of billions and providing employment to area residents.

Learn more about the benefits of investing in Connecticut.
http://info.forumnadlanusa.com/multi

Hartford and Manhattan can be reached directly by train from the new station in Meriden.

The opening of the new station makes Meridan accessible to the surrounding major cities - the new station began operating in June 2018 - Watch the television announcement about the new station

The great advantage of Meriden over many other cities in Connecticut is its excellent location on the transportation axis which makes it possible to get from there to Manhattan in a short time - in less than two hours:

Famous tourist site in Meriden - Castle Craig

CMA Comparative Report (Compasses):

1. 15 Silver street
   Almost identical property offered without renovation at 174,900 USD

https://www.zillow.com/homes/for_sale/57935238_zpid/2-_baths/41.533302,-72.799439,41.529069,-72.807164_rect/16_zm/0_mmm/1_rs/1_fr/

2. 19 Silver Street
Property with the same area sold last April on 195,500 dollars When it is not renovated. 2 minutes away from property

https://www.zillow.com/homes/for_sale/58916883_zpid/2-_baths/41.533302,-72.799439,41.529069,-72.807164_rect/16_zm/0_mmm/1_rs/1_fr/

3.

9 Summit Street - Sold in March for $ 185

https://www.zillow.com/homes/recently_sold/57930052_zpid/3-_beds/1-_baths/150000-_price/575-_mp/globalrelevanceex_sort/41.536318,-72.797138,41.530246,-72.808671_rect/16_zm/?fbclid=IwAR3tgwsY5ecn4r-nm9qeU4-kFutLnzXwUvgVO_mBBbOeb0a_tBC-LexOAik

4.

60 Oak St - Sold for $ 196

https://gyazo.com/0d36f196a5e4ba91e6aa0aeeb482e9e4

https://www.zillow.com/homes/recently_sold/57934249_zpid/3-_beds/1-_baths/150000-_price/575-_mp/globalrelevanceex_sort/41.535162,-72.79681,41.52909,-72.808344_rect/16_zm/?fbclid=IwAR1qMgRe4vU6CWwtE6A2qIydk81eh4EqnCNNRf5sTxSiVe9xaqZ5-LwsUwI

5.

211 Elm St - a 4-room property only - sold for $ 170 in November 2018

https://www.zillow.com/homes/recently_sold/57930271_zpid/3-_beds/1-_baths/150000-_price/575-_mp/globalrelevanceex_sort/41.533997,-72.796773,41.527925,-72.808307_rect/16_zm/?fbclid=IwAR3wZ_lP8bCc85-hjGQU-DxV5bBgQxrL7ecjlSRiBGHFnex3ElxhhXPgg8o

The property is located in a school that ranks second in all of Meridan - from the publication of the property:

Do not miss your chance to live in the Pulaski school district. Pulaski is currently the 2nd highest rated elementary school in Meriden.

The time we can advance in the transaction is limited - the price at which the property will go up for sale again in the free market in ten days by a broker is 109 without the renovation, closing fees, etc. - you can see the sales history below

Property's sales history:

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)

Business plan options:

Today the property has two tenants who pay 650 dollars each to 2 bedroom apartment

1. Option one: Leaving the property as it is as a rental property
2. second option: You can raise the rent to the market price of 900 dollars to existing tenants, or decide to evict tenants
   (In principle it is better to leave a tenant who pays than to spend it to renovate his apartment in 7500 dollars and therefore it is better to see if you can get with tenants to build in terms of their low monthly rent)
3. Option Three: Renovate the property and keep it as a rental property or sell it at a profit (Flip)

Evaluation of expenses according to business plan 3 number which includes renovation:

Information about the property from the municipality:

Property:

Property Chart:

Calculation of existing and proforma expenses: 

You can see that the area is considered a hot spot for investment! With an average price per US $ 167,100. The region has risen by 5 percent in the last year

You can also get by in this area without a car - everything is close and there is a Manhattan train station!

According to the Realtor website, the property value should rise by 13 percent over the next year:

Also according to the site, the value of this property is lower in 35.64 the percentage of similar assets!

The property is approximately 10 only a minute's walk to the Manhattan train (about 2 hours' drive from Manhattan):

Tour of the 1 property:

Tour of the 2 property:

Tour of the 3 property:

Tour of the 4 property:

Tour of the 5 property:

Pictures from the property:

First Floor - Bathroom:

https://gyazo.com/49344612523d887959ac542d8c8e5769

https://gyazo.com/409beb6f3b5c3077a7f88c54ce53f742

Second Floor - First Bedroom:

https://gyazo.com/0d1464dc785b595736e5b48297b3bd55

Second Floor - Second Bedroom:

https://gyazo.com/8000330e593d87f8542f06361d445d6d

CMA - Comparative Index for Rentals (Boxes):

1.

Two Bed - $ 1100

2/

Four Bed - $ 1350

https://www.zillow.com/homes/for_sale/pmf,pf_pt/57935977_zpid/41.537092,-72.795014,41.528627,-72.810463_rect/15_zm/1_fr/

3.

Two Bed - $ 975

4.

Two Bed - $ 1400

5.

Two Beds - $ 1200