Choosing Massachusetts or Rhode Island? (Boston vs Providence)

[Account Closed]

Hi everyone. I grew up in East Providence, RI and currently live in Medford, MA. I, like most investors, am trying to maximize my return, minimize my risk, and grow my business. However, I am having an issue with deciding which market I want to really settle in, and I need the communities help with this one.

I am looking at all of this through a buy and hold cash flow approach of 2-4 unit multi-families. While Boston seems to be constantly "booming", I am afraid of very low ROI. Providence on the other hand offers a little better ROI due to extremely low prices, but is known to be not tax friendly and, on the surface, doesn't seem to have much growth potential. There are many conflicting views on the internet as well with both cities, with some sources saying Providence will turn into a hot market.

I would love anyone to offer their two-cents, personal experiences, and any other knowledge on this matter.

My other question pertains to research. What is the best approach to researching these particular topics in real estate? What are some red flags in a market, and is any market in general considered safe to invest in as long as they don't have any big red flags?

Thank you all in advance!

[Brandon Ingegneri]

Your asking the wrong question. Forget which market to invest in. Hunt for deals in both markets and then evaluate the deal. The second you limit or restrict yourself in this business is the day that you are making less money than you could potentially be making. A deal in Boston may have a higher acquisition price than Providence, but if a deal is a deal in its respective market, it's still a deal.

Things to consider though... Where is your network? Where and who are your resources? Where are you finding deals? Once you answer these questions, you'll know where you may initially be doing work, but don't make the mistake of being confined to a single market.