Single-Family Rental Financing in Block Island, RI

Single-Family Rental investing in Block Island

Single-family rentals are the cleanest DSCR file you can write in Block Island. One unit, one lease, one Form 1007 market rent schedule, and the deepest set of sale and rent comps in the Washington County appraisal market. Detached stock also carries the longest average tenancies, which is what actually protects the ratio you close at.

At the Block Island median of $1,400,000, a single-family rental prices near $1,400,000. Minimum down is 20% ($280,000), leaving a loan of $1,120,000. Estimated all-in PITIA runs about $10,800 per month.

Returns and structure

Return metrics at the Block Island median for this product: an estimated cap rate of 2.13%, and monthly cash flow of $6,800 negative at 20% down. Negative cash flow at the minimum down payment is common in appreciation-led markets; investors close the gap with a larger down payment, a purchase below median, an added unit, or a rate buydown. Note that the $1,120,000 loan amount exceeds the $806,500 conforming limit for Washington County, so agency pricing is off the table and this is a jumbo DSCR file.