Hey BP so based in my research I’m thinking about starting my investing in Vermont due to the low unemployment rate. Do yo think it’s a good start for a newbie and WHY. Thanks in advance
Property taxes are high and it's very tenant friendly.
Personally I am not familiar with the Vermont, however I can provide you with some information that will help you in picking and eliminating markets that aren't a good fit as an investor who wants cash flow.
I can already tell by @Samantha Hiscock repsonse that Vermont may not be a good choice because having high taxes can really cut into your cash flow, and a tenant friendly state will not give you a good experience as an investor...
Here are some things that we make sure exist in a market that we invest in ( two of which are already mentioned by @Samantha Hiscock!)
1. Low property taxes ( really important if you are looking for more cash flow! Low taxes and low property prices are a WIN)
2. High rental demand( this will make filling units much easier if vacancies do occur, and also we have noticed that in areas where there is high rental demand, tenants will stick around much longer)
3. Landlord friendly laws ( you want to invest in a state that is more landlord friendly, this will allow you to have a much more positive experience as an investor)
4. MOST IMPORTANT ( A GOOD PROPERTY MANAGER) This is KEY, you want to work with a property manager that has a good reputation and also is able to educate you about the market. They should know the trends of the market, the demand, and overall just have a clear idea of how their market works!
Hope that helps!
Let me know if you have any questions
@Tony Shiwprashad As Samantha posted above, taxes are high and winter is tough. It's tenant friendly but I personally haven't too many issues over the past 15 years of doing rentals. Demand is very high and I always get a good pool of applicants to select from.
It certainly helps to know the area too. I've successfully invested in Burlington and the central VT area over the years.