Small Multifamily in RI

[Patrick Hughes]

Hello fellow Rhode Islanders, I am looking to begin my real estate investing career and am excited to do so. I am in search of small multifamily (2-4 units) in Rhode Island but have been really struggling to find any deals even worth looking into over the last few months. I would love to hear any suggestions or strategies that others have used in the area to locate deals. Thanks in advance! 

[Anthony Thompson]

@Patrick Hughes welcome and congratulations on starting your real estate investing career! The classic advice when you're having trouble finding deals is to make more offers (a lot more offers) on MLS properties until something sticks, and/or to pursue off-market deals.

BiggerPockets has lots of advice on strategies to find off-market deals, but they all have in common that they'll require persistent effort over a long period of time, and if you market yourself successfully as a home buyer you'll need to take a lot of calls and sift through a lot of coal to eventually find something that might be a diamond.

Common recommendations for finding off-market deals include driving for dollars (looking for run-down or vacant houses you see when driving, then tracking down the owners and sending letters or post cards), direct mail to a variety of lists (e.g., absentee owners, town violations, long-time owners with equity, etc.), telephone pole signs (aka "bandit signs"), lead generation websites and SEO advertising, etc.

[Sam Albert]

@Patrick Hughes it’s hard for buyers right now, in RI. As of this morning, there are only 289 (2-4) units listed for sale and available in the entire state. There’s very little inventory, and thousands of buyers. Interest rates are low and RI is offering incentives to purchase. Therefore, people are motivated and everyone is being aggressive (often time over aggressive) on offers just because they’re sick of looking.

So just know you’re not alone! My advice is to be patient, and work with an agent who is PROACTIVE, has a great relationship with other agents (hears of deals before they hit the market), and I would also encourage you to look at some deals that have been on the market more than 30 days. If they’re not a complete dump, it may be worthwhile to look at those properties, as the owner may be more negotiable.

Best of luck, use me as a resource if you wish to!

[Patrick Hughes]

@Anthony Thompson @Sam Albert Thank you both for the feedback, much appreciated. I will certainly exercise a few of those methods and continue to stay patient.