All Forum Posts by: Joanne Chang

The tax assessment rate for non-owneroccupied rate for multifamilies in Providence is 3.196%, and 1.88% for owneroccupied. You can go here (http://gis.vgsi.com/providenceri/), look up the assessed value, and multiply by the appropriate %. The values were just re-assessed in Jan 2016.

Hope this helps!

Joanne

Hi @Steven Butera! Welcome to BP. I'm an investor and agent focused on the Providence market. I would say that cashflowing properties can most definitely be found in Rhode Island. In Providence, where I am based, there are many multifamilies that can be had for a discount if you are willing to do rehab and stabilization. In addition, as many others noted, you can also go deep into the REO market to find value.

You make money at the point of purchase. Additionally, your investment strategy will depend on your financing structure. There are many niches to explore as well: vacation rentals, student housing, buy-and-hold, fix-and-flip, and micro-niches within each! 

In short, can you cashflow in RI? Definitely. But it will depend on you: your risk appetite, access to capital, goals (metrics!), time horizon, how much time/experience you have.

PM if you want to chat anytime. 

Hi Jason,

Welcome to the world of REI! I am an agent focused on serving investors in the RI and Southern Mass geography. I myself own two multifamilies in the East Side of Providence.

Any specific questions, please feel free to contact me directly!

Joanne

Nope, you can't rent the in-law suite after you move out. Not only with your homeowner insurance change, but it's illegal zoning. Colleen is totally right on that point.

Joanne

Matt is correct. If you live in your home, nothing prevents you from living in the in-law suite and renting out the rest. Only caveat is that if/when you sell, the lender cannot take the rent into account for valuation/appraisal purposes, since it's technically not 2 units. An agent cannot also legally market the property as 2 units.

Hope this helps,

Joanne

Hi Tony,

Welcome! I am an investor focused agent based out of Providence who also owns multi families in Rhode Island. Are you looking specifically in Woonsocket, or are there other areas in Southern Mass you are looking at? Do you have financing set up already? Are you planning on house hacking or are these all investment property? 

Joanne

Hi Courtney,

I think sticking close to home is a great idea. First, it allows you to check on your properties easily. Second, you have home-field advantage when it comes to knowing what rents you can command in what areas, and the expenses you will incur. This will shape how you value these investment properties.

If you own your home free & clear now and do not mind moving, then I would recommend house hacking a multifamily. Buy a 2, 3 or 4 unit and live in one of the units. You can get owner financing (which is usually cheaper and more straightforward than investment financing). Make sure the numbers work even if were to move out in a couple of years! You can also rent out your current home and be cash-flowing on that asset.

Another alternative if you would like to stay in your current primary residence is to take a HELOC against your home. Most local lenders I have spoken to will allow you to borrow up to 80-90% of the home appraised value. This will hopefully give you enough cash to come up with the 25% down payment needed to finance an investment property transaction.

Let me know if you would like some referrals to lenders, so you can at least start having a conversation around what your options look like depending on your liquid assets and credit rating.

Joanne

Hi Courtney,

Welcome to RE investing in Rhode Island! Do you have ideas of where you would like to focus (e.g. city/town, multi/single families), price ranges, rehabs or turnkey, etc)? That would help us guide you to the specific resources you might find helpful to be successful.

Good luck,

Joanne

@Leyanne Oliveira

Hi Leyanne,

Welcome to BP! And to Rhode Island RE investing. I am a real estate investor and investor-focused agent based out of Providence. In addition to the "Grant for Grads" program you mentioned, you would also qualify for the "First Homes Tax Credit for RI" program.

The "First Homes Tax Credit" gives you a tax credit equal to 20% of the total mortgage interest paid, up to $2,000 for the life of the loan. You must own & occupy, e.g. this is ideal for house hacking. Maximum purchase price of $417k.

It's like Rhode Island is trying to get new grads to buy homes and stick around. =)

Let me know if you need assistance with connecting with lenders, setting up automatic MLS searches, etc.

Joanne

Lonel,

What cities/towns are you looking at? Are you primarily interested in single families or multifamilies?

Joanne