Real Estate investors looking for cash flow and appreciation are flocking to Rhode Island to build rental portfolios. The Ocean State is a current favorite of real estate investors due to many factors including a strong and stable economy, a growing and highly educated population with a healthy demand for housing! Easy Street Capital is proud to be a leading provider of investment property loans for real estate investors looking to build rental portfolios in Rhode Island!
Investment Property Loan Types
When it comes to real estate investing in Rhode Island, there are a variety of markets and types of investment property loans to choose from. Rhode Island has plenty of older properties in need of renovators to restore them to rent-ready status. For investors adept at rehabbing older properties, hard money renovation loans are a perfect choice! These investment property loans allow you to buy a property quickly and finance your rehab costs as well! Once you are done, you can either “flip” the property for a quick return or pursue the BRRRR Strategy by renting it out and then refinancing into a long-term, low-rate DSCR loan!
Long-term DSCR Loans are also great for investing in turnkey rental properties. Turnkey refers to properties that are already rent-ready for tenants and require no renovations. Move-in ready homes are great for cash flow and price appreciation. Rhode Island also has a large supply of duplexes and triplexes which are great for cash flow. Most DSCR Loans are fixed rate for thirty years, locking you into a fixed interest rate for the long-term. While, if historical patterns continue, rents and appreciation increase steadily each year. Bottom line, debt costs stay the same while cash flow increases!
Rhode Island: Landlord-Friendly State
In terms of regulation, Rhode Island is considered a landlord-friendly state. Rhode Island has well-defined laws and regulations that govern landlord-tenant relationships. In addition, Rhode Island has established a relatively efficient eviction process for landlords. The state’s laws provide clear guidelines and procedures for eviction cases. This allows property owners to take action in a timely manner when tenants violate lease terms or fail to pay rent. Rhode Island also has regulations in place that require tenants to maintain the rental property in good condition. This includes responsibilities such as proper upkeep, cleanliness, and compliance with health and safety standards. Landlords can expect tenants to fulfill these obligations, reducing the likelihood of property damage.
Real estate investors in Rhode Island are pleased to find a market that does not impose prepayment penalties, offering them the flexibility to refinance without financial restrictions. While some lenders may adjust interest rates slightly higher to accommodate this flexibility, the freedom to refinance remains a significant advantage for investors.
Overall, Rhode Island is a landlord-friendly state that offers many advantages for investors interested in rental properties. With its favorable rental market conditions, investors can feel secure with their investments.
Where To Invest In Real Estate In Rhode Island
Rhode Island offers a diverse range of real estate investment opportunities across its cities. Providence, the state’s capital and largest city, presents a vibrant market with a mix of urban amenities and cultural attractions. Warwick, as the second-largest city, boasts a strong economy and attractive investment prospects. Furthermore, Cranston, the third largest city and a suburban community, provides opportunities for long-term rental properties. Newport, known for its historic charm and picturesque coastline, offers potential in the vacation rental market Lastly, Middletown, with its beautiful harbor and quaint downtown, is a hidden gem for vacation rental investments.
Providence
Providence, the capital city of Rhode Island, offers a compelling market for real estate investors. As the state’s largest city with a population of over 180,000, Providence combines urban amenities with a vibrant cultural scene. With a strong rental demand from both local residents and commuters, Providence presents attractive opportunities for real estate investors. The city is also home to prestigious institutions such as Brown University and the Rhode Island School of Design, contributing to a steady demand for student housing.
Providence’s thriving arts scene is further enriched by annual events such as WaterFire Providence, a mesmerizing art installation on the city’s rivers. These cultural offerings contribute to the city’s allure as a destination for art enthusiasts and create a vibrant atmosphere for real estate investors seeking opportunities in the Providence market. Real estate investors in Providence can benefit from the city’s stable rental market. According to the Zillow Observed Rent Index in April 2024, the average market rent in Providence is $2,200 per month.
Providence boasts a diverse economy, with sectors such as education, healthcare, and technology playing significant roles. The city’s renowned culinary scene, historic landmarks, and lively arts community further enhance its appeal. Providence’s business-friendly environment and favorable regulations contribute to a conducive market for real estate investors, offering potential for long-term growth and attractive rental income.
Warwick
Warwick is a thriving city located in Kent County. With a population of approximately 81,000 residents, it is the second-largest city in the state. Warwick offers a strategic location, situated just 12 miles south of Providence and easily accessible to other major cities in the region.
The city boasts a diverse economy with a mix of industries, including healthcare, education, manufacturing, and tourism. Warwick is home to several major employers, such as Kent Hospital and the T.F. Green Airport, which provide a stable employment base and contribute to the city’s robust job market.
Real estate investors can find lucrative investment opportunities in Warick, with a median sales price for a single-family home of $399,200 as of March 2024, according to the latest data from Redfin. Furthermore, Warwick boasts a thriving rental market with attractive potential for real estate investors. Recent data from Zillow reveals a median monthly rent of $2,400, with the possibility of reaching up to $4,500 in certain high-demand areas. This presents an excellent opportunity for investors to capitalize on the city’s diverse rental market and maximize their rental income.
Warwick presents a promising opportunity for real estate investors, capitalizing on its robust rental demand from both commuters and tourists. Boasting a picturesque coastline, the city offers breathtaking beaches, parks, and an array of recreational activities, attracting residents and visitors alike to its alluring attractions.
Cranston
Cranston is a dynamic city situated along the coast, boasting a population of over 82,000 residents. The city has experienced notable growth and development, with ongoing investments in infrastructure, commercial expansions, and community enhancements. These initiatives contribute to Cranston’s potential for increased property values and a thriving real estate market. Cranston benefits from the presence of esteemed companies that contribute to its strong community fabric, including North Safety Products and Nelipak Healthcare Packaging. These industry leaders exemplify Cranston’s commitment to fostering a thriving business environment and upholding the city’s economic vitality.
Furthermore, Cranston has a strong rental market, with the average market rent in April 2024 reaching $1,900 per month according to Zillow. The median market rent is up a very strong $100 year-over-year. This makes it an attractive market for investors seeking rental properties with potential for solid cash flow and returns.
Cranston also boasts a thriving cultural scene, with a variety of museums, theaters, and artistic attractions that captivate both residents and visitors. The city’s diverse population and rich history contribute to its vibrant atmosphere. Additionally, Cranston hosts numerous events throughout the year, such as the Cranston Greek Festival and the Cranston Arts Festival, attracting tourists and creating opportunities for short-term rentals.
In summary, Cranston’s prestigious educational institutions, vibrant arts scene, and thriving rental market make it an appealing destination for real estate investors looking to capitalize on the student housing and short-term rental sectors.
Kingston
Kingston is a coastal city with a population of over 144,000 residents. The city has seen recent revitalization efforts, including infrastructure investments and commercial developments, enhancing its growth potential and property values. This city presents a range of exciting attractions and activities for visitors to enjoy. The Ryan Center, located on the URI campus, hosts basketball games and live concerts, providing entertainment options for diverse interests. Furthermore, history enthusiasts can visit the South County Museum, which showcases exhibits on farming, fishing, and local crafts.
Kingston presents a favorable market for real estate investors who specialize in niche strategies like short-term rentals or student housing. The presence of the University of Rhode Island, with a student enrollment of over 17,000, creates a consistent demand for rental properties in close proximity to campus. Investors who strategically choose well-located properties and specialize in student housing can enjoy attractive returns that surpass those of traditional long-term rentals. With careful planning and execution, Kingston offers a lucrative opportunity for savvy investors seeking high-yield investments in the Rhode Island market.
Middletown
Middletown attracts visitors with its unique charm and diverse attractions. Situated along the coast, the town offers picturesque beaches and stunning waterfront views. Visitors can enjoy the scenic beauty and engage in various water activities such as swimming, boating, and fishing. Middletown is also home to historical sites and landmarks, including the historic Newport mansions, where visitors can delve into the rich history of the area. Additionally, the town boasts a vibrant arts and culture scene, with art galleries and theaters showcasing local talent. With its coastal beauty, rich history, and cultural offerings, Middletown offers a captivating destination for tourists and potential rental income for real estate investors.
AirDNA, the leading data provider for investors in short term rentals, gives Middletown an impressive market score of 83/100 on “investability”, indicating a favorable environment for investors. Per AirDNA, investors can also expect an annual revenue of $87,100! Investors that use DSCR loans from a forward-thinking lender like Easy Street Capital that qualifies the income of the property using AirDNA projections can likely rake in the cash flow.
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Ready to invest in real estate in Rhode Island? Easy Street Capital is Rhode Island best provider of investment property loans for both hard money rehabs and long-term rental properties.
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