I live in Vermont and have been trying to get my feet wet in the rental market for while but have yet to purchase. Me and my girlfriend are closing on our first home this month and that is taking up the money i had planned for a down payment on rental property.
I am still really wanting to buy a duplex or multifamily to start but like i said used most of my cash i had available. I live right on the New York state border where property is much cheaper but so isnt the rent. Where i live in Vermont you can buy a duplex for around 220,000 it seems like and a 2 bd 1 bath goes for about 1100-1200 if its nice. In new york it seems like you can get property from 140-170k and rents for 600-800 but it is a much more land lord friendly state then vermont and the city has a college in it so always college students looking for a place to stay.
What is the best way to get start after just purchasing a home? Should i go for Vermont or New York?
Neither based on the numbers you have quoted. Neither $1200 on a 220K property nor $800 on a $140K property will produce any positive cash flow. Rents to property value are too low based on expenses to be worthwhile investments.
You need your monthly rents to be in the range of 1% or higher of your property value to be able to produce positive cash flow.
@Thomas S. I think he was quoting the purchase price for a duplex and the rental price for each unit, so that would put him over 1%, still not great numbers. I have a similar situation here in Sothern Vermont, right on the border of NH. properties are cheaper in NH but rent for less. I look in both markets. As long as you know both markets equally well it shouldn't be a problem.
@Josh Dillingham "rental price for each unit"
That would make more scenes. Terrable numbers they way I read it.
@Thomas S. yes i did mean for a duplex and those aren't exact numbers i would try to get the price lower depending on the property and how much ti could rent for.
@Josh Dillingham yes that is the problem i am having here is that St. Albans vermont area creates decent money for rent but it is a expensive market to get into and vermont is to tenant friendly that it almost seems like a better idea to go to NY and rent near a school but then always having college students that just want to party in the apartment would be expensive repairs.
Hey Shane. I’m in Vermont looking for the same thing. I’m a certified chimney technician, maybe there’s an opportunity to partner up on the right type of property. Add me 👍
Hey @Nicholas Shepard I sent you a connection request!