All Forum Posts by: Alexander Zurn

Hello - I have been looking into the Multi-Family market in Rhode Island the past 6 months. Live in 1 side, rent the other, have it pay for the mortgage. Easier said than done of course, but at the price I want, it's just not feasible right now.

I have switched my focus (while still watching the overall market) to strictly an investment property. Put 20% down, rent it out, and cash flow. Again, easier said than done but there are some deals out here at the price points I am looking for.

My question is: Do you think I should give up the obvious benefits of a First Time Homebuyer Program (i.e. help with closing costs, 3.5% down, tax credits among a few) in order to put 20% down on an investment property? I have a private money lender where I could still put between 3-6% down, fund the remaining 14-17% and start cash flowing as soon as I get tenant in.

Specific property notes: Condo, 2 bed, mortgage between $700-$800 and average 2 bedroom rent in area is $1,000-$1,600 (Conservative - Max).

Let me know what you think!

@Mindy Jensen  thanks for the input Mindy!

Thanks @Mike Cumbie & @Justin Fox , unfortunately I think you guys are right. I don't think it would be best for me to start the investing career with this one. I appreciate the insight!

@Christian Bors upon further review, there is a waste management complex 3-4 miles away AND one about 75 yards from the house in question. Does this change your opinion?

Christian Bors thanks for the response. I am not yet sure of the area the smell covers, I will look into that. In terms of appreciation, what makes the deal tough to pass (if I get it of course) is that the last assessment came in at 210k (2016) and I am hoping to get between 160-175. Is the smell a big enough problem to pass up that much of "instant equity"?

BP, I am on the verge of my first purchase and have an important question. I'll get right to it. When the wind blows, it picks up the smell from a waste management location about 3-4 miles away. How big of an issue is this? The house is good in all other facets. Needs work but will get a great price (well below asking price and most recent appraised value) and in the market I have been looking for for months. It's a duplex that if I get this at the right price could be great to hold down the road. What are your thoughts? Perhaps this is the reason it's been on the market over 250 days? FYI: the smell is strong enough (when the wind blows) that you will pick up the scent even if you're not paying attention

@Christopher Kolasa

http://loans.rhodeislandhousing.org/FirstHomes/

Check out the offers here. Good luck!

Rhode Island housing offers programs for 1st home buyers, certain benefits etc. They also offer a Down Payment Assistant program that (clearly) assists you with your down payment. It acts almost as a 2nd mortgage to be executed at closing but essentially it's possible to buy a house (as a first timer buyer) with VERY little or no money down so you can start hopefully cash flowing quickly (with the right selection of course). Check it out! Google it and see what you think!

I don't have any experience on the matter. Good luck!

Hey Chris, quickly skimming here but have you considered a first time home buyer program with DPA? I work for a competitive home loan lender here in RI and we have a ton of people like you applying for first time home buyer programs through Rhode Island Housing. Shoot me a message if this is something you might be interested in. Good luck!