All Forum Posts by: Elizabeth Newcombe

I don't know the particular unit or area, but yes, I would say that for an income property, you want your purchase price to be low enough compared to rent that you are at least in the positive digits after accounting for everything. I would recommend plugging everything into the rental calculator again, look up vacancy rates in the neighborhood using neighborhood scout, or as a general rule of thumb plan to set aside 10% of rent for maintenance/vacancy and repair budget. I'm not going to discourage you from going for it if u see upward rent potential and property values going up there, but I personally wouldn't do it. If it was a multi-unit and you were planning to live pretty much rent free and have the other unit cover most of the rent, that would be a good investment. Or if there is demand in the neighborhood for nicer more expensive apartments, see if there are some affordable updates you can do to increase the rent a couple hundred per month. If you want help, message me the address and I will take a look at it for u. 

Yea I don't see any cash flow there, unless rent could go up. You haven't accounted for repairs, maintenance or vacancy. I'd suggest finding a property with better cash flow potential. 

Do you have anyone you can go to for a private money loan in exchange for equity in the property? If it's cheap and they will be getting a cut of the profit and partial ownership, a family member or friend might be interested. All u will need to borrow is 30% of purchase  price plus holding costs. Hard money will cover 70% of purchase plus full reno budget. (Good luck and reach out if you need anything! I can connect u with hard money.)

Thanks for the input everyone!

eek, I didn't think of that!

Wow Matt, that's inspiring! Well done:)

Thanks Kevin, 

Yea, That is exactly the profit I am looking at, and I put an offer in, so fingers crossed! This is a great cul de sac street and very desirable neighborhood, lovely 1/2 acre lot. The house is not too bad compared to a lot I have seen, but considering how much it foreclosed for, I am wondering if I even have a chance! I guess I just have to wait and see...

Hi,

I am feeling too lazy to research all the sales of auctioned REOs in my area to determine how much of a loss the banks are willing to take on these. I am wondering what my chances are of getting an auction property for $100k+ under the foreclosure amount. In your experience, how much below the foreclosure amount did you purchase a distressed REO for? The home in question has an ARV of $380k, and needs significant work to get it there, and the bid is at $240k, but the foreclosure amount is about $360k. Obviously they are not going to get $360k, which is what many lovely, move-in ready homes are going for in this area. (Attleboro) Just wondering what your experiences have been with regards to this? Thanks!

I have lived in Dorchester, Attleboro, and the East Side of Providence. Attleboro has a new train station, and some new development near there, and has the commuter rail. It sucks as a town, but is great due to its proximity to other things, the highway etc. Appreciation has been strong there as well, schools aren't bad, it's pretty affordable and rents are decent. Based on my analysis of the markets as a realtor, I'm focusing my investing sights on Attleboro and the East Side of Prov. There's a proposal for a large market in Fox Point, which would boost what's already a pretty desirable area. You can't go wrong with the East Side in my opinion, but getting deals is the challenge.  Its super walkable, safe, architecturallly beautiful, there's great food, constant source of tenants due to the universities...I am not familiar enough with the other neighborhoods of Providence to take a gamble there yet, but am interested in studying Cranston. Would love to discuss more, as Boston vs Providence has been a question I'm mulling over too. I'm analyzing deals everywhere in the middle, too, but it is helpful to narrow the focus in terms of mailings and driving for dollars! 

I am in RI and also interested!