All Forum Posts by: Christian Allen

Fed Hill has been doing really well the last few years.  The area has become very attractive to young renters looking for the convenience of all the bars and restaurants.  Definitely starting to become competitive to find properties.   

Hey @Jerry Batista, I own on a multi on Federal Hill.  Not technically the West End but close.  Sounds interesting what you are doing, would love to know more.  

They do exist, I closed on one two months ago.  I'm not familiar with your area but if you search for 203k lenders on Google and contact the top results, most likely one of them has experience.  If possible I would suggest finding a lender who "specializes" in the 203k loans as they require a few more steps and consultants to get involved.  I worked with a local lender who specialized in the 203k and they were able to walk me through the process very well.

I use Venmo.  Doesn't allow for recurring payments to be setup on the tenants side but is pretty quick to transfer the money to your bank.  My tenants are primarily millennials, most of which have Venmo already.   

@Richie Pace the Providence market is very neighborhood dependent.  Many people are drawn in by the low prices of most of the small multifamily inventory but without knowing what the neighborhood is like and what tenant base it draws you can be buying into some headaches.  I would say this applies to any real estate as the number 1 factor is often said to be location.  

Providence covers most of the tenant bases, white collar, blue collar, student, section 8 etc.  Determine what "niche" works for you.  I personally own a few rentals in the city which all attract "young professionals" based on the close proximity of restaurants, bars, and universities.  

Overall I would say the market is pretty strong right now.  Every time I post an ad for a rental I get 25+ hits within the first couple of days.  The supply is very low for the demand in most of the city.  

If you have questions about a specific neighborhood or area, feel free to PM me.  I've lived in the city for 4 years and have a pretty good feel for what to expect.

Hey everyone,

I'm looking for suggestions for a CPA in the Rhode Island area who is familiar with the tax strategies of real estate investing.  I currently own 3 multifamilies that I have purchased in the last year and a half and need some help planning for the upcoming tax season.  I live in Providence but would be open to professionals in the surrounding towns or someone who can work well remotely.  

I purchased a 3 family in Providence that was being used as an AirBnB for two of the units.  The guy who lived on the first floor was related to the owner and was the "property manager" for the two rentals.  They advertised on HomeAway and AirBnB and had pretty good success.  A majority of the reservations were long term nurses, people visiting family in the area, and parents visiting during graduation.  

They claimed to have a "low" vacancy rate for the two units and grossed more per month than a year long lease but that comes with more management.  Short term renters will have more questions and requests during their stay which for me was not a scalable model.   If you are fine with arranging a cleaning service or doing the turnover yourself, it can be a profitable opportunity in Providence.  

The site below provides data on AirBnB's based on location.  Might help you with your decision as well.

https://www.airdna.co/

I'm currently house hacking with plans to house hack again in the future but want to leverage the equity I currently have. If I take out a Home Equity Loan against my current primary to buy another investment property, do I have to pay off the balance before turning my current primary into a rental? Do they typically work like an FHA loan where there is a minimum 1 year occupancy requirement?

I plan on living in my current property for at least another year but don't want to be stuck if in the future I do decide to house hack again.  

@Steven Harrington I will also add that taxes might be significantly higher in Providence/RI than in areas of Mass.  The listing you shared for $409k has a yearly property tax of $1,697.  A comparable size and priced 3 family in Providence for a non-owner occupant could be paying $10,000/year or more in property taxes.  I'm sure you've priced this into your analysis but it does make it hard to compare price to price with other areas when your bottom line is going to be hit with a large expense.  

Also, as @Anthony Thompson mentioned, Providence can be different street to street.  It's hard to make a generalization of any of the neighborhoods, even the East Side as there are streets that are much less desirable than others.