All Forum Posts by: Sean Doherty

Thank you both @Anthony Thompson and @David Sisson Great information and some actionable steps I can take.  I plan on attending the RIREIG this month. I'll come prepared with a few questions, and try to get in contact with people who have done a conversion like this. Unfortunately, the numbers are not great without the additional unit but I'm going to continue looking into this so I will have a better understanding of the process for future possibilities.  I'll make sure to update this discussion when I get more information.

@Christian Allen Thanks for the info. Im going to keep looking into that property but am also still looking for other deals that I can use a 203k loan on.

Thanks @James Dickens  for the response. I forgot to mention part of my plan was to live in the one unoccupied unit while I added the basement unit then move to the basement unit once I finished it. I'll definitely be looking into making sure it is legal and up to code.

Good luck with your search!

I found an up/down duplex in Providence Rhode Island that is less than a decade old and as far as I can tell in great shape. I did an analysis using the BP rental calculator and determined it only makes sense to buy if I can convert the basement into a third unit, this will obviously add rental income and I believe it will add value to the property. I toured the property and think the physical aspects of doing this are possible.  There is a regular walkout door on one side of the unit, a staircase that leads up to the main entry/exit point on the other end of the unit, high enough ceilings, and plenty of standard windows along one side of the basement.  My plan was to use a 203k loan to buy the property and fund the rehab cost of adding the basement unit.

I'm interested to know if anyone has created value by adding a unit to a property in Providence and if so, what was the experience like? I went to the city hall and found out it is zoned R3 which I guess is the first step towards making it possible to convert to a 3 family. The next step is where I get a little lost. I was given an application for variance/or special use permit that I will be reviewing shortly and also told I would have to hold a meeting to see if anyone in the neighborhood objects to my conversion plan. I was also told that 3 family homes require sprinkler systems to be installed in the entire building.

So my next step is to review the application for variance permit and determine the extra cost of installing a sprinkler system. If anyone has any experience in doing something like this can you give me some feedback on whether or not its worth it or think its even reasonably possible. 

This would be my first deal. I'm excited to start investing and want to do something that adds value to a property but I am a little nervous about the legality/possibility of doing this as well as the extra costs from applications and fees that I might not be aware of, and the sprinkler system installation cost.

Thanks @Peter M. exactly what I was looking for. Also thanks for the tip on watching out for that extra service fee. Much appreciated.

@Scott Anderson Ok thanks for the response!

Thanks, @Anthony Thompson and @Sherwin Vargas very helpful info, exactly what I was looking for. Based on what you guys said I think I've got the right sense of those areas. It's nice to hear from others, it definitely makes me feel more confident moving forward.

Thanks for the info @Matthew Charron ill add the meeting to my schedule now. Can you reply with the location or should I message you privately? I currently live in MA but am looking to invest in RI and am very open to doing a house hack in RI 

Thanks @Anthony Thompson the podcats are great! I've been checking out the BP podcast and the money show on my way back and forth to work every day. I think it's a great way to utilize what would otherwise be wasted time.