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tiredofthisalready t1_j1odkfa wrote

We bought our house in Pawtucket this past summer. It appraised $20k over the asking price (which was actually a bit high for the market) and the appraiser put a whole section in their notes about Pawtucket being an up and coming neighborhood and that property values will grow. Providence is getting more and more expensive but the exodus from Massachusetts is still happening. Many can't do the commute from Cranston or other affordable areas so they're buying in Pawtucket.

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jeanclaudevandamnnnn OP t1_j1ognc7 wrote

thanks! this is what i was looking for. ideally i’d like to buy a multi family in providence using a first time home buyer loan. but the prices just keep rising. what neighborhood are you in? is it walkable?

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Queen_Axeline t1_j1p3r9b wrote

Please don't do that right now. The prices are astronomical and you will have no choice but to evict the current families who live there or double their rent to support your inflated mortgage (thus forcing them out). Most multifamily renters are FAMILIES. The cost of renting a 3 bedroom in Providence has gone from roughly $1200 to roughly $2400 in less than a decade and I assure you most of our salaries did not double. Furthermore these houses are all about 100 years old, loaded with lead and asbestos and need a ton of work. Whatever price you're looking at...add 80K.

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Mountain_Bill5743 t1_j1qyokv wrote

Such important points (though, of not OP someone else will still jump at the inflated price). I saw the same multifamily switch hands 3x in under a year (1 flip, the second buyers did nothing but raise the price 100k and relist in a few months).

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jeanclaudevandamnnnn OP t1_j1r0pmn wrote

exactly. someone’s going to do it either way. might as well be me. im not an evil billionaire slumlord looking to take over pawtucket with my shitty, overpriced, falling apart rentals. im really just looking for a spot to call my own.

as for the termites/lead/asbestos, im sure that is a big problem but if i am using a FHA loan hopefully the rigorous inspections will help to eliminate some of that.

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OutlandishnessNo7283 t1_j1q06ga wrote

Why buy a multi family? I’ve noticed a lot of people have this false idea that it’s easy passive income and they can basically buy a house w/o paying for a mortgage. This is not true, it’s a toonnnn of work, you’ll have shitty tenants complaining all the time (at all hours), and you’ll also have wonderful tenants who cannot afford the rising rent and you will be faced with the decision to evict them. Not to mention upkeep and repair costs. Why would you ever want to be in this position?

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tiredofthisalready t1_j1ohhga wrote

We are in Woodlawn. An easy commute into Boston was important for us so we tried to get close to the 95. But we're walkable to some great restaurants like Rasoi as well as Lippit Memorial Park. I like board games so I was really excited to be within walking distance to Untapped Games. It's also a super short drive to a lot of other great places.

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Mountain_Bill5743 t1_j1qxeea wrote

Hey OP, I see you're mentioning FHA. I would speak with an agent about your hope to use FHA and for a multifamily. FHA is a great program, but it seems like it is extremely hard to use since the pandemic (according to some friends in real estate). The competition is still there, so your offer will be much tougher of a sell against offers with 20% down. From my understanding, the multifamily market is still competitive since rents are astronomical here. It doesn't mean it can't happen, but you might want to evaluate your options.

Also, I'd do some research into FHA (if you haven't already). For example, I have friends who did a multifamily on FHA pre pandemic and this impacted their ability to refinance for a lower rate or move when their family got bigger because it was under 5 years. They're doing well, but it does have some conditions.

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ForTheLoveOfAudio t1_j1sgxoa wrote

Interestingly, we opted to do a conventional loan, in spite of our eligibility. We believe this saved us when we had our home inspection, because our inspector had found knob-and-tube wiring. From what I understand, people going for a FHA loan can't even bid on a house with knob-and-tube until it's been abated.

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Mountain_Bill5743 t1_j1tdr0i wrote

Unfortunately, many of the best FHA options (most likely to choose FHA) are probably the least able to qualify for the conditions of the loans. I assume the less problematic properties are still going to the stronger offers. I have friends who had similar challenges with VA loans in 2020, though, I think it's great both programs try to avoid financing possible money pits.

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jeanclaudevandamnnnn OP t1_j1r01ox wrote

thanks. i am starting the research process now and plan on talking to someone by summer. i have heard that is it not easy to compete with cash offers/ bigger down payments. hopefully there is something out there for me!

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Mountain_Bill5743 t1_j1ra7dk wrote

I would encourage you to talk to someone sooner (and be honest about your intentions of just browsing at this point). For example, if FHA is a non-starter you'll want to know as soon as possible because you will need to be saving for a better down payment. Realtors who know the area closely should be able to give you an idea of where you'd have the best shot of FHA for your desired size and budget (or if its even a possibility).

Maybe reach out to Rhode Island HUD as I think they offer free counseling on this kind of thing.

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