Investor · Portsmouth, RI · Member since 2018 · 23 posts · 7 votes
I am active duty military, relocating to Newport, RI later this year. I am looking for any information on good areas to buy and hold later as a rental property. I am open to purchase multi family properties, as a house hack oportunity. Any information would be greatly appreciated.
Investor · Newport, RI · Member since 2013 · 43 posts · 18 votes
7y
Hi Aaron,
I own a number of properties on the island and find Portsmouth the best for my rental model.
As an aside I have a new renovation in Easton's Point (middletown near the beach) I'm using for myself this summer but looking for an off season renter... not sure if you already have housing secured.
Buy and Hold Investor · Cranston, RI · Member since 2013 · 1k+ posts · 1k+ votes
7y
@Aaron Gorum welcome to Rhode Island! The market here is pretty hot, and Newport has always been one of the better / higher priced areas.
I always recommend that people try to stay close to home, or where they spend the majority of their time, just because properties do need a little looking after.
Most or all of Newport County is relatively high priced, and the same is true of Washington County, maybe to a slightly lesser extent, but all of those towns are mostly good areas and priced accordingly.
If you can buy in Newport itself, I think it will hold its value, but your rate of return is likely to be meager, especially at today's prices. You might find much better deals if you can venture over the line into Mass, especially the Fall River area. That area has had a run up too, but especially for multis I think you'll get the most bang for your buck there, vs. of the towns in Newport County RI.
That said, every town has not-so-great areas and it's worth actually driving around and talking to people. And especially trying to do a deal directly with a seller if possible (calling on for sale by owner signs, asking who might have something for sale, even sending a letter to the owner of a property that looks like it needs work). That is definitely more labor intensive, and may not fit your timeline, but I thought I'd throw it out there since even good towns like Newport have pockets that are tougher areas.
I'd also recommend attending local real estate groups, such as RIREIG and there are some in Fall River as well, and taking some folks out for coffee, investors or even agents who are active in that part of the state, to get a better sense of the area.
Once you're in town, I can recommend a few people specifically who have experience in the Newport/Aquidneck area, who you could get together with or talk to. One thing I've heard is that there are a lot of locals who never leave the island :D
I am active duty military, relocating to Newport, RI later this year. I am looking for any information on good areas to buy and hold later as a rental property. I am open to purchase multi family properties, as a house hack oportunity. Any information would be greatly appreciated.
Welcome to Rhode Island. One of the things that you'll notice is that Rhode Islanders do not want to drive anywhere. Aquidneck Island is only one city and two towns yet few people want to leave the island. While I go to Newport a couple times a year I've actually never bought any properties there. There are a lot of house hacking opportunities in Rhode Island but most of them are in Providence County. I agree with Anthony that Fall River might be your best bet if you're trying to get a decent cash flow. If you just looking to house hack and break even Newport has some possibilities.
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
7y
Yes, I love the Rhode island idea of a commute, it is like 20 minutes and it is not snow because there is less snow in RI then MA. It is just the mindset.
If your intent is to buy to live now and possibly use as a rental later, I don't think you will find anywhere in MA a good option because of your commute. If you are stationed in Newport your best location is Newport or the Newport side of the bridge (Newport/Middleton). I don't know about portsmouth. Newport is a busy summer area as is Washington County (sometimes referred to as South county) so the toll and bridge traffic from Narragansett area can get old. Jamestown usually has little inventory in a reasonable price range. If you go to Narragansett you can do a student/summer rental when you leave but it is a very specific market so you need to know whether your property would work for that and find something at the right price. Also consider if you could handle the commute in the summer. There are also rental restrictions, in Newport I think it is a two week minimum for summer rentals. Narragansett you have < 4 unrelated person ordinance. Good Luck and regardless of if you get a property it is a great area to spend time. Tons of stuff to do.
Investor · Newport, RI · Member since 2013 · 43 posts · 18 votes
7y
Hi Aaron,
I own a number of properties on the island and find Portsmouth the best for my rental model.
As an aside I have a new renovation in Easton's Point (middletown near the beach) I'm using for myself this summer but looking for an off season renter... not sure if you already have housing secured.
Investor · Portsmouth, RI · Member since 2018 · 23 posts · 7 votes
7y
Speaking to a few real estate agents in the area, they are giving me a basic quote of approx $150 per sqft for rehab estimations. Does this price point sound right?
Also, septic systems seem to be a big deal in these areas. Reading up on the issue, the septic should be rated per room (anything over 100 sqft). The reccomendation of the state is to replace the septic if you are rehabbing approx 25% of the home. Has anyone had a run in with this?
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
7y
Septic replacement is required based on the dollar of rehab value. If Newport say 25% then you probably should budget it in for any rehab that is more then cosmetic. Also keep in mind you will probably need the expensive Nitrogen reduction system in that area. Last person I knew that got one it was about 30k but they could have come down. You need to go to DEM for approvals for septic and that takes time. I thought the septic was based on bedrooms but they may count non-bedroom spaces too.
Not sure on your rehab estimate. It really depends on the property.