How to BRRRR in Providence, RI

Start with the gross math. Providence's typical home value is $429,449; ZORI (Zillow's rent index) sits at $2,231/mo. That's 6.24% gross annual yield. That's well above the national 4-5% baseline — meaningful cushion for a BRRRR to pencil even at today's debt cost.

Run the DSCR sanity check. Assume 75% LTV refi at 7.5% interest, 30-year, plus taxes + insurance + 8% PM + 8% vacancy/capex reserve. On these inputs you'll likely clear DSCR 1.10-1.20 in Providence — tight but bankable. Don't fall in love with marginal deals; reject anything that doesn't pencil at 1.15 minimum.

Rent demand color: Providence rents ($2,231) sit 16% above the national median ($1,930). Above-average rent + below-average prices is the BRRRR sweet spot — that's why the gross yield is healthy.

Refi appraisal risk: Providence home values are flat YoY — refi appraisals should support your renovated comp on a properly scoped rehab. No softening tailwind to worry about, no appreciation tailwind to lean on.