Although it isn’t the biggest state with a population of approximately 3,565,00 people, Connecticut has become increasingly popular with real estate investors.
Famous for its scenic coastlines, breathtaking lakes, amazing foliage in the fall and the invention of the modern day hamburger, this particular state is filled with unique opportunities for house flippers. In this guide, we reveal some key tips and interesting facts that you should keep in mind, if you’re ready to make your first flip in CT.
Key House Flipping Stats Connecticut
Median Purchase Price
Median Resale Price
Total House Flips In 2019
Median Household Income
High School Graduation Rate
Average Travel Time To Work
Top 5 Cities for Flipping Houses
- New Haven
Top 5 Safest Cities in Connecticut
- Greenwich – Safety Score: 92.71
- Endfield – Safety Score: 88.80
- Norwich – Safety Score: 88.78
- Shelton – Safety Score: 88.14
- Wallingford – Safety Score: 87.00
Top 5 Areas with Best Public Schools
- New Canaan
Please note – All the statistics in this article are based on 2019 data. You can view the data sources at the bottom of the article.
What You Need To Know About Real Estate In Connecticut
Real estate investors should consider Connecticut for their next investment, as the area shows great potential for people who specialize in fix and flips. The average revenue for flips in the state of CT is approximately $98,950. This should give investors a healthy profit margin to work with, provided they can keep the renovation costs under control and stay on budget.
Bridgeport, New Haven, Hartford, Stamford and Waterbury are the cities with the most flip activity, and you should keep these areas in mind when researching the best possible location for your first flip.
Overall, property prices in Connecticut are set to rise by about 3.7% over the next year, and this trend may continue for years to come. Perhaps more importantly, the median purchase price for fix and flip investors is around $120,000. This indicates there is a decent supply of undervalued homes, that can be renovated and resold for a much higher price
Single-family homes are the most sought-after properties in this area, and the residential sector continues to perform well overall.
Simple Tips for Flipping Houses in CT
House flipping is when an investor purchases a property for the sole intention of rehabbing and reselling it for a profit. This is a lucrative investment strategy – there is the potential to make a profit quickly, and get immediate equity if the investor selects the right property and stays on budget.
Fix and flip investors in this area either use their own personal funds or take a loan from a hard money lender. Banks don’t typically fund this type of transaction due to the risk involved, and not wanting to manage a property in case of non-payment.
Fix and flip properties are typically older, character properties which become more valuable through home renovation. Hard money lenders offer investors a variety of benefits such as fast loan approvals and closing. Every real estate investor should aim to keep to the 70% rule, which guides investors to pay only 70% of a property’s after-repair-value (ARV) without the cost of repairs added. The final ARV amount dictates a property’s final value after the renovation has been completed. Other factors that influence the value of a property will include the size, where it is located and the prices of other similar homes in the area.
Hard money lenders like New Silver offer interest rates and terms that cater specifically to these types of real estate projects.
How To Find A Property To Flip
As a real estate investor, you should find it reassuring that the demand local properties in CT is growing. Affordable housing is in particularly high demand with a demographic of buyers that is largely made up of millennials. As a result of this demographic, starter homes and secondary single-family properties are sought-after.
The old adage goes, the three most important things in real estate are location, location, and location. To find a good fix and flip property, you should carefully research the performance of local areas you are interested in. You will want to determine what the average housing prices are, what renovation one would cost you and why it would be attractive to potential buyers. You’ll also want to avoid properties that have bigger structural issues or need major repairs, as these can be costly to repair.
Armed with the most recent market-related data, fix and flip investors in Connecticut can better maximize their returns. House flipping is a profitable method of wealth-building for investors, and the CT real estate market assures them of good returns if they choose a property wisely. The local market is projected to continue on an upward trend, and investors can capitalize on this opportunity with funding from New Silver by applying and getting loan approval online in under 10 minutes.
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