All Forum Posts by: Brandon Ingegneri

Having properties in all of the cities and towns that you are discussing here, I can say that I have had both good and bad experiences in all of them.  I would say that overall, everything is relative.  The entry price in Woonsocket is less than Pawtucket but rents are a bit more affordable and I have nearly zero turnover.  Pawtucket right now seems overpriced in my opinion as compared to when I bought a lot of my properties there.  I personally am only buying there now when a specific deal is a steal. Given the higher rents that are collected, there is a bit more turnover given that many of the tenants transition to homeownership.  We invest in a number of other towns in the area.  Overall, a good deal on a property is a good deal.  If managed properly, a property can perform with stability and adequate cash flow.  We span from Narragansett to Woonsocket and literally every city and town in between at one point or another.  If you find the right deal and operate it properly, the municipality is less of an issue as opposed to the specific neighborhood within that municipality.  

With regard to your budget question, this will depend on the style of house, and how easily the mechanics also can be tied into the existing footprint of the house.  If you hvac in the house, this would obviously be an additional expense.  

Assuming that the property is a cape cod style house which is a common shed dormer renovation in these neck of the woods, the roof can be built out, and a bath added if it sits directly above the existing bathroom in the ball park of what you have budgeted.  Again, house specific, and finishes dependent, you have a reasonable budget expectation. 

My company lends in RI and I would be willing to discuss terms.  Feel free to give me a call.  

Congratulations and welcome to the PVD market. 

In my opinion, the highest yield with the lowest amount of servicing is the way to go.  If you can clear the same money with fewer units but a higher end property and clientele, I would personally prefer that.  If it takes a massive number of units to achieve better results, that would be the way to go. 

If you are assessed as a 5 unit, do you have the ability to create a 5th unit and get the additional unit performing?  If so, why not just take advantage of the situation?  It is much more difficult getting the zoning approved to ad a unit as opposed to reducing one. Once you do it, it is unlikely that you will be able to reverse should you want to down the road.  

If you are adamant on eliminating the 5 unit zoning classification, you will need to speak to the zoning department and then the tax assessor's office.  Depending on the situation, you may need to speak to an attorney who deals with zoning issues, but I would definitely explore the possibility of creating a 5th productive unit. 

As long as your pre-qualified, you can essentially purchase any property that falls within those parameters.  It does not matter whether it is listed, off market, from a wholesaler, etc.  Additionally, if the property does in fact need work, you could utilize a 203k loan. 

You would need a minimum of 10-15% down plus points to get anything reasonable. Also, interest rates are very dependent on experience. 

The long and short of it is that you contact a CPA or tax attorney to establish the exchange for your sale.  You will have a predetermined amount of time to identify potential properties to roll your proceeds into and a predetermined amount of time to physically close on a property of equal or greater value.  The funds are held in an escrow account through this entire process.  By doing this, you would be deferring your tax liability. 

4 units typically required a commercial mortgage, sometimes private waste collection, and always requires a complete fire alarm system.  A 3 family would not require the full fire alarm system and you typically do not need private wast collection (municipality dependent).  A traditional mortgage can be utilized for a 3 family.