All Forum Posts by: Lisa Kattenhorn

@Anthony Thompson  Thanks for the info!  That was something I had heard, as well, but I wasn't sure how close it was to passing and I didn't have those details.  I know they have been trying for a number of years to get it passed.   If it passes, then I guess I will become a lot better acquainted with the system. It's actually something I have been considering doing anyway, but that would make my decision for me.

@Sean Maiden  As far as I understand it, there is a lot of demand for Section 8 housing in Rhode Island, especially in Woonsocket, and you would have waiting lists for your apartments if you chose to accept Section 8.  And yes, the government would pay a large portion of the rent every month, which could be beneficial.  You also have to understand that you may get a mixed bag in terms of how responsible the tenants are.  Some section 8 tenants may be very responsible, while others may be a huge headache.   (You could find that with non section 8 renters too.)  That being said, I personally have no experience with it because RI does not require you to accept Section 8 tenants in your apartments, unlike MA.  This may change, but that is the law right now.  So, I don't currently rent to any Section 8 tenants.  It may be something I consider in the future, but I haven't had any problem filling my apartments so far.   The rents are lower than some areas of MA, sure, but there are a lot of areas with low rent in MA too.  You need to look at the rents vs the cost of the house.  For example, a 3 family house in Woonsocket could go for 250k and you could be bringing in 2700-3000/month in rent.   It will be hard to find a spread like that in the more popular areas.  Just my two cents anyway...

You could consider Woonsocket.  Areas of Woonsocket bordering N. Smithfield have some nice houses for cheap, including many multifamilies for between 200 and 250k.  Some of these houses have huge apartments with beautiful woodwork that is well preserved.  The commute wouldn't be awesome if you were to live down there, but it wouldn't be awesome from someplace like Worcester either.  I have a few units in Woonsocket and it has worked out well for me so far.  Will have to wait to see if there is any appreciation on them though.  It won't be the same as appreciation around the Waltham area though, thats for sure.  

If the location works for you, I would also check down the 146 corridor.  If it can be in RI, you could also consider Woonsocket.  

Hi Angelo!  I am a real estate investor living in Worcester.  Nice to see more Worcester folks joining up!  If you are looking for local groups, check out Black Diamond and Mass Landlords.  

I am really interested in Key West and obtaining an AirBNB type vacation rental property down there.  It's a 5 year goal of mine.  I would be really interested to hear about people's experiences with short term rentals there and good management companies/options in that area.

I'm sorry I can't answer your question but I was wondering if you ever found an answer.  I am in a similar situation.  Thanks!

Also, please keep in mind that it’s only a “cash cow” if your tenants actually pay the rent.  Good luck getting a tenant with a good credit score and a decent income to live in a bad area.  Why would they when rents aren’t that much higher in the nice areas?  Anyone can promise to pay but after chasing them around month after month and paying for multiple evictions, especially in a tenant friendly state like MA where evictions can take 6 months, are you really coming out ahead?  Plus, from what I have seen, many of those cheaper three deckers have problems with asbestos, decks that aren’t up to code, electrical that needs to be redone etc.  all of which will become your problem. Then there is the vandalism and theft that can occur in those areas.  Lastly, although they may yield better cash flow if all goes the well, they will not appreciate the same way as a three decker in a nicer area might.  For me, personally, it was not worth the headache and I would rather save up a bit more and buy a property I might actually want to live in.  I don’t really find it to be an issue of morality because you aren’t tricking anyone into living there and some people may feel the headache is worth it...but yes, higher cash flow usually comes with bigger risk.  If you decide to move forward with a property like that, get a really thorough inspection and a good eviction lawyer!

Also, please keep in mind that it’s only a “cash cow” if your tenants actually pay the rent.  Good luck getting a tenant with a good credit score and a decent income to live in a bad area.  Why would they when rents aren’t that much higher in the nice areas?  Anyone can promise to pay but after chasing them around month after month and paying for multiple evictions, especially in a tenant friendly state like MA where evictions can take 6 months, are you really coming out ahead?  Plus, from what I have seen, many of those cheaper three deckers have problems with asbestos, decks that aren’t up to code, electrical that needs to be redone etc.  all of which will become your problem. Then there is the vandalism and theft that can occur in those areas.  Lastly, although they may yield better cash flow if all goes the well, they will not appreciate the same way as a three decker in a nicer area might.  For me, personally, it was not worth the headache and I would rather save up a bit more and buy a property I might actually want to live in.  I don’t really find it to be an issue of morality because you aren’t tricking anyone into living there and some people may feel the headache is worth it...but yes, higher cash flow usually comes with bigger risk.  If you decide to move forward with a property like that, get a really thorough inspection and a good eviction lawyer!

@Michael Jones Interesting, thanks!