All Forum Posts by: Christian Allen

All of my multis in Providence are around $1600-1900/year.  I carry a higher deductible as it can make the annual premium lower.  I've gotten quotes in the range of $3500 but continue to call local providers until I can find a company with a more reasonable rate.  If you aren't already, make sure to be calling local offices of the providers.  They are more familiar with the area and have a better understanding of how to write a policy for the older homes.   

Congrats @Chelsie Ritarossi on closing! That's a big first step.  Most parts of RI have a high demand for good rentals so getting a good tenant in by Jan 15th shouldn't be too hard depending on the area.  

For creating a listing keep it simple and clear. List all apartment amenities, possible local attractions/neighborhood features and what is included in the rent/not included.  Good quality well lighted pictures go a long way in getting more people interested.  It's crazy how little effort some people put into the pictures which can make or break a listing.  As mentioned above, try to list on as many websites as possible to reach the largest audience you can. 

How quickly you can get the rental ready depends on the condition it is in currently. From my experience it is better to do any preventative work on the units before tenants move in to avoid hassle down the road.  It's much easier to get quotes and have contractors doing work while it's unoccupied. Even if this means missing a month of rental it could save you headaches and money down the road.  

I like cozy.co for management software.  Free to use and has most of what you need as a small landlord 0-50 units.  You can create listings, applications, screen tenants, collect rent, and track maintenance requests. 

Congrats on getting an offer accepted!!

I personally have used online landlord tools like cozy.co for screening tenants and collecting applications. Much easier than tracking paper applications.  Cozy also has online rent payment and syndicates apartment listings to a few sites (realtor.com, doorsteps.com) as well so it's a good tool for small landlords. 

Other than that, I usually post on Zillow which syndicates to trulia and hotpads, as well as craigslist.  If you post to all of those you cover most of the rental listing market.  

@Chelsie Ritarossi yes absolutely.  Always enjoy talking with other investors about the Providence market.  There are many others on BP as well who own property in the area and would be great resources as well.  

Welcome to BP @Chelsie Ritarossi!  It seems you are already on track with some of the avenues to find your first investment property.  Each of the 4 areas you have outlined have potential opportunity given the right deal.  

I personally own 3 multis in Providence and would be happy to answer any questions you may have about the area or tenant demographics from my experience as a landlord.

If you have the funding to do a conventional deal that's a great place to be.  Otherwise, I am a big advocate for "house hacking" as it reduces your risk as well as makes managing the property a little easier.  It all depends on your goals and it sounds like you have them well laid out already.

Best of luck as you begin your journey!  

@Brent CoombsI should clarify. I personally have not done it since my refi was into an investment loan but I have a similar investor friend who has a loan broker who is telling him she has clients who have done it multiple times with owner occupied refi's.  I would say if you have any intention to not live in the property much longer while refinancing, you should take the hit on the interest rate and get an investment loan.  

@Remone R. not sure if there's any way around the owner occupied loan factor.  You can try different banks/brokers.  I have heard of some people getting a second owner occupied loan shortly after a refi.  You can ask around at different banks to see if you have any luck.  

@Remone R. to answer your question about the first lender contacting me, no, they didn't because at that point I had already fulfilled the 1 year requirement and refinanced out of the loan. The loan I refinanced into was a conventional investment loan because I was told you were essentially signing up for another 1 year of occupancy if you refi'd into a conventional owner occupied. It came with a slightly higher interest rate but that was the cost to get into a second FHA.

I was still able to use the rental income from the first property despite not having 2 years of tax return history.  I think that one really depends on the lender you are using and what type of overlays they have.  I used a small on branch local bank so they had few additional restrictions.  

@Sean Doherty I believe sprinklers are only required for 4 family and above but since the building is less than 10 years old it may be different but I wouldn't think so.  I don't have any personal experience with the change of occupancy but I have heard of people finding it difficult to navigate the city process.  It would be good to find someone who has done it before and may be able to provide you direct info on how to go about.  

I've done a 203k myself so if you have any questions about the loan, feel free to PM me.  Good luck!