The Barre area definitely has cashflowing properties on the market. I've got 7 units in town and clear about $250 per door. If distance is an issue there are some great property management companies in the area. I've got my real estate license, let me know if there are any that you want the listings/docs for and I can send them your way.
@Ben Granja That it is, duplex’s are way too expensive, most properties you won’t cash flow at all or you need a ton of rehab to still not cash flow. As far as a 4plex (what I would like to start with) the market is bare of those. Atleast in the st.albans area.
@Samantha Hiscock the problem with barre is I do not know the area at all. If a property is in a good area or in a bad neighborhood that only poor quality tenants would rent.
There are definitely a few areas to avoid, but most really aren't so bad. A quick visual of the neighborhood will give you an idea of what to avoid, some are just streets of blighted properties. The individual property condition tends to dictate the quality of tenant more than the area. Parking here is crucial- if you've got of street you can usually command a higher quality tenant and one with a J-O-B. Employed tenants are my favorite!
@Samantha Hiscock just did a quick search and it is definitely a much easier market to enter then the st.albans market. I take it parking in that area is a lot of street parking and off street parking is hard to come by?
There is a winter parking ban in effect for about 6 months of the year and many of the properties are on very small lots. Downtown many of the apartment buildings only have 1 or 2 spaces at most. Once you get out of the immediate downtown area you have more parking and properties are much more desirable overall. A dedicated spot per unit is definitely a nice feature for tenants with a vehicle, as most people have to drive to a job.
@Samantha Hiscock oh that makes sense then, St. Albans has the same issues with any of the apartments on main st. Thanks for all the info, greatly appreciated!
@Samantha Hiscock My job is moving to Randolph - will definitely be checking out the Barre area within the next year or so, would love insight to the avoidable (tenant quality and flooding issues) areas and what areas are better/more desirable.
Maybe we can get a beverage some time later this year! Speaking of that - it's about time to set up another VT meet up event... I think the last one was in February!
I'll second @Samantha Hiscock , I am always telling people Barre is the best place for cash flowing properties right now but they don't want to invest there without knowing the area. You can easily find a $100k duplex that'll get you $1500+ in rent every month. Just screen your tenants well! As you should anywhere.
I grew up in Randolph, but have lived in Barre for almost a decade so I know this entire area pretty well. I am always available for questions about specific areas. Cashflow is definitely huge around here.. and alot of properties are under market rent. HUD FMR for a 2 bedroom is $1057 and is $1315 for 3 bedrooms. I usually dont have problems with tenants, you just have to screen them like you would anywhere.
Originally posted by @Shane Brown :
@Samantha Hiscock @Martha Nowlan I was scrolling through Zillow in the Barre area and comparing it to rents on Craigslist, it did seem like a great area for rent to purchase price ratio. I do not know barre at all. What’s the best way to learn the good areas compared to an area where you will not be able to get a desirable tenant? Should I just drive through the city and judge it by the looks and feel of the area? Maybe talk to the police department and see where they have a lot of problems?
Driving around is certainly a good idea. If there are a few properties you want to take a look at just let me know and I will set that up and show you some of the more desirable areas. Realistically though, about 2/3 of my tenants are on subsidy which means that even in an icky area, I still get the same FMR as long as the property passes inspection.
Even the nicest property in the greatest location can easily be a nightmare if the tenant is awful. Screening is key. But the cashflow here is some of the best in the state.
Great discussion. I'd also love to see some fourplex love. I believe my next move will be a 1031 into a Vermont small multi-family. Very interested in a meet up as well. Thanks for all the informational posts so far.