All Forum Posts by: Sam Albert

Very tough to just ‘create’ a third unit. Going to run into a lot of zoning issues. Going to have to hard wire smoke detectors since that’s a requirement for all 3 families in RI, deal with National Grid on getting gas meters in there, run electrical for a new panel, It’s just going be a headache.

What you should look to do is find a legal 2 unit that has a townhouse (VERY common in Providence). The townhouse will share utilities with most likely the second unit. So, you’ll have to just include utilities for those two units. This acts like a 3 unit, and costs less than a legal 3 Family property.

Hi Richie,

I truly enjoy discussing the Providence market, because I actually love it and know it extremely well. 

As an Investor and Realtor, I get to see the market from many different point of views. To say the least I think the Providence market is extremely interesting. That is not to say that it isn't an extremely challenging market, because it really is right now. If you aren't connected to a wholesaler or a good Realtor with investor contacts.... Good Luck!! 

You won't be able to grab a good REO deal on the MLS right now, unless you're a cash buyer. Even when you're a cash buyer the chances of you obtaining that property aren't the best. You need to have a very proactive Realtor, and you need to be able to act fast! Cash buyers are purchasing REO deals quickly and with cash and then selling them for $10,000- $15,000 more to flippers or investors looking "BRRRR".

Here's why the market gets tough. When that Wholesaler/Cash Buyer is asking for that $15,000 more, your profit margin and LTV numbers can just drop down significantly! However, here's the positive side for investors: Yes prices are going up in the front end (REO, foreclosures), but they're also going up on the back end (Retail FHA/Conventional/ Traditional buyers). What this basically means is that yes investors are paying more for deals right now because the market it competitive, but when you go to sell that flip, you can put it on the market for top dollar right now and get multiple offers because inventory is just low.

With Rhode Island Housing offering their $7500 downpayment assistance to FHA buyers right now, there are a TON of buyers (that I help as a Realtor), looking for properties, but there is just not much out there. This is causing bidding wars! Which at the end of the day only benefits sellers.

If you could connect with wholesalers or if you have access to cash to get these REO or Short Sale deals, I still think Providence is a great great Market to make some money right now, if you're buying in the right areas obviously!! 

Congrats!

Welcome!

Hey Tim. I'm a Realtor here in Rhode Island and a very active investor. I now have 4 multi's and 2 flips (1 under contract now). I also work with wholesalers and private lenders! If you have any questions feel free to reach out to me, through Private Message!