All Forum Posts by: Brett Read

@Jake Noreau I can only speak from my experience but I think there are a lot of non student renters in Elmhurst depending on where you buy. I didn’t get a single student inquiry when I had my listings up. 
If you buy near the Pembroke and Eaton St area you’ll probably get a lot more student renters compared other areas of Elmhurst. It’s a diverse neighborhood. Most of my inquiries were from folks that work at the Roger Williams Hospital or young professionals who work downtown. 
Send me a DM and I’ll connect you with the lenders I use. 

Hi @Jake Noreau, as @Anthony Thompson mentioned you can get more for your money in Elmhurst (a lot more). I have a 2 family in elmhurst that pulls great rents (1200 for a 2BR with no utils included) and I didn’t have to pay the big price tag associated with the East Side. 
It might be worth prospecting for rent by owner listings in the areas you’re looking in to make your efforts more efficient. 
As for financing I recommend talking to local lenders who understand the R.I. nuances. I can recommend a few if you’re shopping for a mortgage. 
Feel free to message me if you have any specific questions.

@Jon Farley 

Hi Jon, if you have the stomach for it you may want to consider short term and/or student rentals since you’re not too far from the URI and summer rental market. Feel free to reach out if you have any questions. 

@Brett Bessette I self manage I only have 4 units. I work for a property management company though. Private message me and I’ll try to get some data for you from their portfolios.

@Brett Bessette estimating these numbers is definitely difficult and I agree with everyone here: get building specific numbers from past bills from owners/property managers.

I have found water/sewer costs to more stable compared to other utilities. I use $50/month/unit for water and $50/month/unit for sewer. The exact numbers fluctuate every month but average out to around 50/month/unit each. I don’t have a ton of data so I cant guarantee the accuracy of these numbers. 

@Afoma Okwudiafor if you end up in providence check out la salle academy. I had a great experience going to high school there. 

To add to @Anthony Thompson and @Peter Kuck ‘s feedback I'll add that you'll want to discuss any possible ADU with your lender early on in the process. If one exists or a "possible" ADU exists it may affect your loan. Best to have that discussion upfront with your lender rather than them finding out from the appraisal. I have heard that removing the stove can be a work around, but it is still prudent to check with your lender and local municipality. Hope that helps and let me know if you have any other specifics questions.

Hey @Stephen Torti !

My only additional comment would an idea that @Anthony Thompson gave me a while back. It will cost more money but it could be a good idea to set up your own LLC and establish and operating agreement between your LLC and your partner's LLC. Setting up a LLC is pretty easy. Otherwise Anthony's advice covers my thoughts on further investigation. Good luck and let me know if you need anything!

@Raymond Hill I rent a lot of apartments in Woonsocket and have to agree with @Anthony Thompson. If you want to message me the address or street name I can share my knowledge of the area. I’m in Woonsocket weekly leasing market rate apartments. Some areas are fine and some you may want to avoid. 

Dealing with section 8 in Woonsocket has been a mixed bag for my company. You can have a great experience or find yourself in a tough spot if the housing authority stops paying you because of a failed inspection (this happened to my company). If the house is in great condition and you can obtain a lead compliance certificate easily your dealings with housing could go smoothly. 

On a positive note I get many good renters who commute to southern mass and even Boston because of the drastically reduced rents compared to mass. If the numbers work and you do your homework on the neighborhood you can find opportunity. 

Eladio, to add to Anthony and Brandon, you’ll want to ask your lender if they require reserve funds for a 3 family. Lenders I’ve used and my clients have used required a reserve for a 3 family purchase but this is not a requirement for a 2 family purchase. 

RI housing has a rehab loan which can be an additional option to the 203k loan if you find something that needs rehab.