Not sure where to start?

[Steven Butera]

I've done quite bit of reading on real estate investing, listened to a lot of the great BiggerPockets podcasts and am very familiar with CRE (as I pro forma the financials from the end user standpoint). That said, I'm still struggling with where to start investing in residential RE. I live in Rhode Island, and the housing stock here is expensive, primarily old, lead paint ridden and as one of the bluest of states no doubt favors the tenant. So I'm not sure how to get anything to cash flow here other than in fairly poor areas with very old multi's. While the schools are strong and the summer is great here, the economy is weak, population growth is among the worst in the country, the cost of living is high and property taxes & maintenance costs are very high. Would I be better investing outside the northeast (say Raleigh, Charlotte or VA Beach) though I don't know the areas as well? Any help is greatly appreciated? Has anyone started their residential investing career far away and how did it work out? I'm thinking SFH's or multi's, though possibly may look into notes.

[Joanne Chang]

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.