All Forum Posts by: Justin Hammerle

@Account Closed - $250-350 per sqft is basically the cost of new construction using a GC in New England.  If you want to raze the property and build a new 2-Family that may be a better bet value wise, but I'm assuming $299k Acq is too expensive.  I would definitely spend some time taking a look at other properties.

 @Account Closed - I understand your point, but do we have an irrational fed or irrational general public?

@Brooke Morton - adding to Jay's input the bank should be the one to tell you what amount they will need in order for them to do a partial release.  It is really odd that they are asking you that question.

@Brian Gosselin - Welcome to BP!  STRs in RI are going to be very location specific. I would spend some time analyzing Newport, Downtown Providence, College Hill and the Narragansett Beach area 

@Richard Lopez - I would connect with a local agent that specializes in land sales in the area; they could likely give you the best advice on value and demand for the lot itself, then you can make an informed decision on whether you want to sell or try building on it yourself.

The Fed increased its benchmark federal-funds rate again this Wednesday which will now range in the 5-5.25% representing a 16-year high.  Some economists are claiming that this raise was already priced into current mortgage rates ranging in the 7s hinting to a possible natural decrease to the low 6s without any further action.  The Fed's narrative was no longer clear with regard to additional needed increases; it seems in my view that the priority has shifted from cooling raising inflation and employment to monitoring banking sector stress and credit conditions.  I am not one to call a top but are we finally there?

Next Fed meeting is scheduled for June 13-14th, I'll be a very interested listener.

@Jeff Puciato - private sources are another option; there are private lenders that will focus on the metrics of the individual deal and not give too much weight to your existing debt load.   

@Keith Davighi - Being in BP forums I suspect you should be familiar with the BRRRR strategy. This is great for what you are looking to do; recycling capital from deal to deal will allow you hold properties for the income while you move on to the next and build a portfolio. Of course always easier said then done but I would spend some time looking into it if you haven't already.

 I would contact the city first to see if they are going to require testing prior to issuing a permit or C/O because of the explosion.  If they do, then you would have to contact an environmental agency that could drill into the soil and give it a clean bill of health.

@Blake G. - just a side note here outside of valuing the land.  If you had a gas explosion you could have a situation where you may need soil remediation; this can be very expensive and absolutely destroy the value of a lot.  Just something to keep in mind if its not on your radar.

best of luck