Introduction

Investing in rental properties can be a lucrative venture, provided you choose the right property in the right location. A good rental property should have a strong demand from renters, promising return on investment, and the potential for property value appreciation over time. The location is pivotal as it influences rental demand, rental income, property management logistics, and long-term value growth. Washington County, Rhode Island, with its picturesque landscapes, vibrant communities, and economic opportunities, is an attractive destination for rental property investors.

In this guide, we will explore the best neighborhoods and areas in Washington County, RI, and grade each based on convenience, tourist attractions, things to do, average home prices, return on investment, proximity to work-related travel (such as hospitals, convention centers, and sports venues), and the 'x-factor' that makes each area unique and desirable.

1. Narragansett

Grades

• Convenience: A
• Tourist Attractions: A+
• Things to Do: A+
• Average Home Prices: C
• Return on Investment: B
• Proximity to Work-Related Travel: B
• X-Factor: A+

Convenience: A
Narragansett offers excellent convenience with well-developed infrastructure, easy access to highways, and proximity to essential services like schools, shopping centers, and healthcare facilities.

Tourist Attractions: A+
This coastal town is renowned for its beautiful beaches, including Narragansett Town Beach and Scarborough State Beach, drawing tourists from all over.

Things to Do: A+
From water activities like surfing and sailing to dining at seafood restaurants and enjoying local festivals, Narragansett provides endless entertainment options.

Average Home Prices: C
Home prices in Narragansett are higher than the county average, reflecting its desirability and coastal location. This can be a barrier to entry for some investors but also indicates strong rental potential.

Return on Investment: B
While the initial cost is high, the strong demand for vacation rentals and steady appreciation rates offer a promising return on investment.

Proximity to Work-Related Travel: B
The town is within a reasonable commuting distance to major employment centers in Providence and Newport, with good access to public transportation.

X-Factor: A+
Narragansett's unique charm lies in its coastal beauty and vibrant summer tourism, making it a highly sought-after rental market.

2. South Kingstown

Grades

• Convenience: A
• Tourist Attractions: B+
• Things to Do: A
• Average Home Prices: B
• Return on Investment: A
• Proximity to Work-Related Travel: A
• X-Factor: B+

Convenience: A
South Kingstown boasts excellent infrastructure, including the University of Rhode Island, top-rated schools, and ample shopping and dining options.

Tourist Attractions: B+
While not as tourist-heavy as Narragansett, South Kingstown offers attractions like the Theatre-by-the-Sea and numerous parks and beaches.

Things to Do: A
From educational and cultural activities at URI to outdoor adventures in parks and on the water, South Kingstown provides a diverse range of activities.

Average Home Prices: B
Home prices are more affordable compared to Narragansett, making it accessible for more investors while still offering strong rental demand.

Return on Investment: A
The presence of the university ensures a steady demand for rentals, both short-term and long-term, making it a solid investment choice.

Proximity to Work-Related Travel: A
South Kingstown is conveniently located for commutes to both Providence and Newport, with good access to public transportation.

X-Factor: B+
The combination of university-town energy and coastal living provides a unique and attractive environment for renters.

3. Westerly

Grades

• Convenience: B+
• Tourist Attractions: A
• Things to Do: A
• Average Home Prices: B
• Return on Investment: A
• Proximity to Work-Related Travel: B
• X-Factor: A

Convenience: B+
Westerly offers good convenience with essential amenities and services, although some areas can be more remote.

Tourist Attractions: A
Westerly is home to the famous Watch Hill and Misquamicut State Beach, making it a popular tourist destination.

Things to Do: A
From beaches and boating to the arts and music festivals, Westerly offers a rich variety of activities.

Average Home Prices: B
Home prices are relatively affordable, making it accessible for investors while still offering high demand for rentals.

Return on Investment: A
Strong tourist demand and year-round rental potential provide excellent ROI opportunities.

Proximity to Work-Related Travel: B
While not as centrally located as some other areas, Westerly is within commuting distance to larger cities and offers local employment opportunities.

X-Factor: A
Westerly's charm lies in its historical significance, beautiful beaches, and vibrant cultural scene, making it highly desirable.

4. Charlestown

Grades

• Convenience: B
• Tourist Attractions: B
• Things to Do: B+
• Average Home Prices: B+
• Return on Investment: B+
• Proximity to Work-Related Travel: C
• X-Factor: B

Convenience: B
Charlestown provides essential amenities and services, though it is more rural compared to other areas.

Tourist Attractions: B
Attractions include local beaches and wildlife refuges, but it is less tourist-heavy than Narragansett or Westerly.

Things to Do: B+
Outdoor activities like hiking, fishing, and beach outings dominate the recreational options in Charlestown.

Average Home Prices: B+
Home prices are more moderate, offering good value for investors.

Return on Investment: B+
While not as high-profile as other towns, steady demand for vacation rentals provides a reliable income stream.

Proximity to Work-Related Travel: C
The town is more remote, which may be a drawback for some renters needing to commute to larger employment centers.

X-Factor: B
Charlestown's appeal lies in its natural beauty and tranquility, making it ideal for those seeking a peaceful retreat.

Conclusion

Washington County, RI, offers a range of investment opportunities across its diverse towns and neighborhoods. Whether you prioritize coastal charm, university-town energy, or tranquil rural settings, there is a location to fit your investment goals. By evaluating the convenience, tourist attractions, things to do, average home prices, return on investment, proximity to work-related travel, and unique 'x-factors,' investors can make informed decisions to unlock the potential of rental properties in this beautiful region.