Opportunity For Fix And Flips In Bridgeport
Connecticut was an underwater real estate market for nearly a decade- average prices were dropping year after year and buyer interest was at an all time low. However, the markets began making a comeback in recent years and the mass exodus of New York City helped give it a major boost. As of January 2021, the average home prices in Bridgeport reached $265,000, which is a nearly 33% increase from the previous year. Over 130 homes sold during the month which is a 31% increase from the year before and on average homes are staying on market for just 60 days with multiple offers before final sale.
These market conditions are ideal for fix and flip investors, with buyer demand being high and inventory staying on market for short amounts of time. Savvy investors could chain together several successful deals throughout the year and walk away with a consistently high ROI. With the city and state both seeing consistent real estate gains over the last few years, the market rebound is clearly more than a fluke and will remain a strong investment center for years to come. If you’re an investor that wants to use our Bridgeport fix and flip loans for your next success, then contact us today.
New Construction Needed For Bridgeport
With home buyer interest reaching record highs for the area, while available inventory reaches record lows, residential new construction can fill the gaps in Bridgeport’s market. As of January 2021, homes in the area are selling for $137 per square foot, which is an impressive 30% increase from the previous year. Being able to source materials directly and lower the project costs can help experienced builders achieve an even higher ROI on the final sale.
The ability to build homes to meet specific market demands is a major advantage to new construction investors, ensuring their project sells and sells fast. For example, three of the most popular home features in the area are walk-in closets, finished basements, and security systems. Homes in the city with these amenities are receiving more attention for their online listings and in many cases are being offered above asking price. Filling inventory gaps with homes that have highly demanded features is an excellent investment strategy. If you’re an experienced builder or contractor that wants to use our Bridgeport new construction loans, contact us today.
Bridgeport Rental Property Remains Steady
Due to record low inventory shortages and a sudden population increase, the rental market has remained steady in Bridgeport Connecticut. As of January 2021, 56% of the population are renting their homes and the rental vacancy rate remains lower than the national average, making it a stable investment area for rental property. Rent prices have remained flat from 2020 to 2021, which is a positive considering major metropolitan areas have seen rent prices decrease due to the global pandemic. Savvy investors who can begin planning their investment strategy now and secure a strong rental property in Bridgeport can benefit from the upcoming rental market rebound.
Real estate investing has gone through several trend cycles, and the most current one is the BRRRR method of investing. This long-term investment strategy stands for buy, rehab, rent, refinance, and repeat. It’s a straight-forward investment process that focuses on return over time rather than instant bursts of cash from fix and flips or new construction sales. The investor purchases a rental property using a hard money rental loan and then renovates it to increase the market value. After finding a tenant and starting to produce passive monthly income, the investor refinances the loan and uses their newly acquired capital to purchase their next rental property, thus repeating the process. By following the BRRRR strategy, investors can quickly grow their rental portfolio and have a small empire of income-producing assets. If you’re an investor that wants to use our hard money rental loans for BRRRR investing in Bridgeport, contact us today.