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Updated over 3 years ago on . Most recent reply
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Investing in Providence/Pawtucket RI
Hi Everyone,
Has anyone ever invested in Providence RI or Pawtucket RI? How is the market out there? If so what are the best areas/neighborhoods to look into? Would you say there is a good cash on cash return? I am thinking about buying a multifamily house and potentially looking into RI.
Thanks in advance!
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@Michelle Paulsen yes I've invested in, and currently own in, both cities.
The market is crazy out there - multiple offers above asking price, and people waiving inspections, are unfortunately getting very common, especially for multifamilies.
It's hard to speak in generalities about market-wide or city-wide cash on cash returns. In general, as prices go up, returns go down.
It's far more important to be able to analyze a particular property's income & expenses, and compare it to your offer and available mortgage terms, and determine the cash on cash return (and debt service coverage ratio) on that specific property.
There are many neighborhoods and borderline areas in each town. In general, the better the area (e.g. the East Side of Providence), the higher the price and the lower the return, but (again generally) also the lower the risk & hassle.
Do you have specific neighborhoods in mind in either city that you're wondering about?
A couple of well regarded neighborhoods in each are the East Side and West End (for Providence), and Darlington and Quality Hill (for Pawtucket)