Rhode Island real estate investing

[Coua Lee]

Hi All, 

I’m new to the real estate investing world and would love any advice you would give to a new mom. 

I recently got preapproved and have been on the search for a multi family home preferably a duplex or triplex. I’m also open to single family home with an in law suite, that way I can rent out rooms and live in the in law suite. 

Rhode island is pretty small state so determining where to invest have been challenging too.  what does everyone think about the Johnston area vs west Warwick areas?  

Let me know what your thoughts are about the RI market. 

Thanks, 

Coua 

[Anthony Thompson]

@Coua Lee I just bought a three family in Johnston and have owned and lent on West Warwick properties as well. Generally speaking Johnston is a little nicer than West Warwick but it really comes down to individual neighborhoods within the towns. There are some neighborhoods in West Warwick that are nicer than some neighborhoods in Johnston, and vice versa.

The property tax rates are pretty similar too (22.89/1000 for Johnston and 23/1000 for WW) so I’d say it really comes down to analyzing the numbers on a specific property. The price is probably a bit higher in Johnston but so would the rents be. West Warwick probably has more multis but it also has more tougher areas. It really comes down to the individual property/numbers IMO.

On your possible plan with the in-law in a single family, renting out the rest of the house, just be aware that even if it’s a legal in-law, technically it’s only supposed to be for family members. I don’t believe the scenario you proposed, which is renters in rooms in the house and you in the in-law, would technically be a legal use of the in-law.

It probably wouldn’t matter but in theory if you had any problems with neighbors they could complain to the town and the town could issue a violation and you would have to stop that use. My recommendation would be to buy a bona fide multi family instead, but that’s up to you.