Rental Property Investor · Boston, MA · Member since 2020 · 27 posts · 12 votes
Hi Everyone,
Has anyone ever invested in Providence RI or Pawtucket RI? How is the market out there? If so what are the best areas/neighborhoods to look into? Would you say there is a good cash on cash return? I am thinking about buying a multifamily house and potentially looking into RI.
Buy and Hold Investor · Cranston, RI · Member since 2013 · 1k+ posts · 1k+ votes
5y
@Michelle Paulsen yes I've invested in, and currently own in, both cities.
The market is crazy out there - multiple offers above asking price, and people waiving inspections, are unfortunately getting very common, especially for multifamilies.
It's hard to speak in generalities about market-wide or city-wide cash on cash returns. In general, as prices go up, returns go down.
It's far more important to be able to analyze a particular property's income & expenses, and compare it to your offer and available mortgage terms, and determine the cash on cash return (and debt service coverage ratio) on that specific property.
There are many neighborhoods and borderline areas in each town. In general, the better the area (e.g. the East Side of Providence), the higher the price and the lower the return, but (again generally) also the lower the risk & hassle.
Do you have specific neighborhoods in mind in either city that you're wondering about?
A couple of well regarded neighborhoods in each are the East Side and West End (for Providence), and Darlington and Quality Hill (for Pawtucket)
Buy and Hold Investor · Cranston, RI · Member since 2013 · 1k+ posts · 1k+ votes
5y
@Michelle Paulsen yes I've invested in, and currently own in, both cities.
The market is crazy out there - multiple offers above asking price, and people waiving inspections, are unfortunately getting very common, especially for multifamilies.
It's hard to speak in generalities about market-wide or city-wide cash on cash returns. In general, as prices go up, returns go down.
It's far more important to be able to analyze a particular property's income & expenses, and compare it to your offer and available mortgage terms, and determine the cash on cash return (and debt service coverage ratio) on that specific property.
There are many neighborhoods and borderline areas in each town. In general, the better the area (e.g. the East Side of Providence), the higher the price and the lower the return, but (again generally) also the lower the risk & hassle.
Do you have specific neighborhoods in mind in either city that you're wondering about?
A couple of well regarded neighborhoods in each are the East Side and West End (for Providence), and Darlington and Quality Hill (for Pawtucket)
Buy and Hold Investor · Cranston, RI · Member since 2013 · 1k+ posts · 1k+ votes
5y
@Lisa Tam that neighborhood can vary block by block. I’d recommend following the standard advice of visiting during the day, at night, during the week, and on weekends, to get a sense of that particular block.
Some of it is great, has really been improved over the last decade, while other sections are still as tough as they’ve always been.
Also be sure to visit during the school year rather than over the summer as there’s a good amount of student housing in that area. (Not really a concern now of course, but I am keeping future readers of this thread in mind too.)
Waltham MA · Member since 2019 · 24 posts · 4 votes
5y
@Michelle Paulsen I am currently looking in the RI area too. I’ve been mainly focusing on the Providence and Pawtucket area but I seen some good properties out in Cranston also. I live in the Boston area so I like the low prices out in RI, unfortunately rents are not that much down here.
Rental Property Investor · Providence, RI · Member since 2018 · 76 posts · 64 votes
5y
@Woodly Tisme
I'd focus on the rent to price ratio rather than just the rent price itself.
It's very easy to apply the 1% rule in the Providence/Pawtucket area. Around Boston, not so much. Also, don't let those 800-1000 rents on the MLS discourage you. There's room to go up. I've been seeing 2BR easily rent for 1200 and 3BR easily rent for 1400. Of course, these are units in good shape, and not falling apart.
Realtor · Boston, MA · Member since 2017 · 187 posts · 40 votes
5y
@Michelle Paulsen there are some opportunities as mentioned by others above. If you have any questions or would like a local agent in the area to help, I have a couple that I could hook you up with. Best of luck!
Hi! I was wondering if anyone could provide their perspective on the Woodlawn/Fairlawn areas of Pawtucket. I understand that they are less desirable than other areas, such as Darlington, but if the property is cash flowing well, would other factors preclude you from investing there? (I.e. less potential for appreciation, crime rates, etc?)