Providence investor

13 Replies

Hi all newbie over here I live n Massachusetts and property are quite expensive over here. I started looking n the Rhode Island (central falls , pawtucket, north East providence, Cranston) area those prices look more affordable, all I care is about cash flow . I would like to Connect to buy and hold investors in the ri area. Thank you
Originally posted by @Anthony Thompson :

Lusi, yes, welcome to BP!

When you say connect with buy and hold investors in RI, do you have questions you'd like to ask?

everything about the market vacancy rate , rent range , any fun stories ? I own two properties in the north shore area but now the prices are crazy that's why I'm looking central falls Pawtucket area providence . I'm a cash flow investor. Any thoughts ? Also any financing options I cannot afford to do 25% down at this particular time  but def would consider something lower.

Thank you 

Lusi,

Have you been able to connect with any investors willing to share knowledge?  I am also getting some skin in the game in these areas.  I think with any new market the best thing to do is drive around.  

Best of luck,

Russell

Hi Luis, I saw your question about investing in Providence 4 years back. How did it go? Did you make a move in to the market?

Is there anything you could share with someone like me who is looking in to investing in rental property in Providence RI?

@Luis Capriles sorry I didn’t see your follow up post with your questions. To answer them (better late than never and also for anyone else with similar questions), vacancy rate is low, as long as your rents are market and there’s nothing funky about the property I think you can safely use 5% in your analyses.

Rent range really depends on area and number of bedrooms so you’d need to get more specific. Floor used to matter more, in years past, but with the rental market being so tight recently it seems to matter less right now; people who used to turn up their nose at a third floor are happy now if they can get it. But I usually just tell people to go on Craigslist and Zillow to look at similar units in the area (i.e., do their own quick rental comps).

For fun stories, I have a few :) About once a year or so the RIREIG group does a landlord round table which also usually brings out some fun landlord war stories so check out the website each month to see if that’s the topic of the upcoming meeting.

Since we are getting late in the cycle, this is usually when creative loans start coming out and it looks like this time is no different. The question of investor loans with less than 25% down has come up on BP many times before but it comes down to, you just have to ask around.

Start with any local bank or credit union you already have a relationship with and ask there, but you may also have to go to a mortgage broker, at which point you should definitely have some success. Worst case scenario you can find private or hard money loans, at this stage of the cycle I know several experienced and even more new lenders who are practically falling all over themselves to make new loans.

Also I do recommend @Russell McGinnis’s suggestion of driving around any areas you’re thinking of investing in, to get a feel for the area. Usually the traditional advice is to try to visit once during the day, once during the week and night, and once on the weekend, so you get a sense of the area at different times. I will also add it, it’s a great idea to talk to older folks you see out in the neighborhood, to ask their opinions of the neighborhood and especially what direction it’s heading. They have been around and are usually very happy to share their knowledge, in fact sometimes they will talk your ears off :-)

Other than that, to add on to @Al Yan ’s question, just curious if you ever came into the Rhode Island market, what you found or bought, etc.

Great info @Anthony Thompson ! I am looking at a two family in North Prov. The current owner said water/sewer were $1200/year combined. Does that sound right (6 bed, 4 bath - 3/2 times 2)? Also, does property taxes cover trash removal? The property is right near Windmill St. School. It’s seems a little rough, how is that area. TIA!

@George Post I only have one property in North Prov, a 12 unit, but looking at last year's water & sewer #s, I came up with about 250/bedroom/year. Applying that to your 6 beds would be 1500/year. So the seller's # of 1200/year is probably in the reasonable range but you could use 1500 if you wanted to be conservative.

Property taxes for a 2F normally do cover trash removal, but the tenants will need to put it out on the curb regularly of course. I don't know North Providence that well, as I said I only own one property there, so Windmill St. School doesn't mean much to me, but my general thought is that if it seems a little rough, it probably is.

Hope that helps!

@George Post what's the Zip? I don't see a Windmill St school in North Providence. Keep in mind North Providence is a separate town. I do see a Windmill St school in the north part of Providence. Just wanted to point that out as sometimes the difference in names is not all that apparent. Just like the East Side of Providence is located in Providence, and East Providence is a different city across the river.

Originally posted by @George Post :

Thanks for the responses gentlemen. It’s on Peter St. North Providence. 

Also, does anyone have a good home inspection contact? Thanks!

 I believe that's Providence and not North Providence.

I'm a fan of Josh at JML Home Inspection