Michael Dumont II Signing in!

21 Replies

So I'm new to the BP forum. I will be involved her, as I have found the materiel to be some of the best found on the web. I am recently committed to expanding my portfolio in the greater Burlington area of Vermont, and plan to make great connections here on BP.

I welcome anyone to contact me so that we might sit down and have a cup of coffee. If that is't practical due to geographical limitations, I would still welcome conversations via Skype and BP Colleague Chat.

Godspeed,

Welcome @Michael 

I'm a So Calif guy moving to Springfield Vt... I have looked at properties up in your neck of the woods, but trying to keep my properties as close together as possible in Vt and Nh...

The Burlington area in my opinion is stable and a good rental market. The new up and coming down town is 6 miles east of Burlington in Williston 05495 . The market is growing rapidly and demand is high. There are not many properties on the market but a great buy and hold market.

Originally posted by @Ralph Jensen :

The Burlington area in my opinion is stable and a good rental market. The new up and coming down town is 6 miles east of Burlington in Williston 05495 . The market is growing rapidly and demand is high. There are not many properties on the market but a great buy and hold market.

 I would have to agree that Williston is a great buy and hold market @Ralph Jensen. However, South Burlington has the largest potential. Aside from being a great market currently for buy and hold cash flow, The city is on the verge of implementing a huge town center that  will be a huge lure, and ad new businesses and housing targeted to Generation M's preference of life style living over all else. Additinaly having top rated schools in Vermont and by nationally by Forbes Magazine, the schools will be going through a massive restructuring and consolidation of students. The primary goal will be to establish innovative infrastructure among the buildings. Last the plans for the Airport expansion and it's economic fuel will drive the city's ability to grow.

@michael dumont II 

South Burlington is indeed hoping! We can't keep anything on the market down there for more than a few days if it is a single family in good shape and in the $200- $350k range. 

Hi Michael,

Welcome to BP! You have found a great resource, and it's good to see another Vermonter on the site. 

I would have to disagree that South Burlington is a great buy and hold market for cash flow. It's a great market to buy and hold for appreciation, but the cash flow you get from a $300k duplex (if you get a deal) is minimal, you would be lucky to break even every month. While South Burlington has a strong chance of continuing to be a popular area to live in, and thus has a strong potential for property to appreciate, this is not guaranteed, and therefore in my mind any investment there is more speculative in nature and a little more risky than buying a property that from day one has a double digit Cap Rate and 30%+ CoCR. However, everyone has different reasons for investing in real estate and different goals, so South Burlington may be great for you, and not for me. It certainly is a wonderful place to live, one of only a handful of towns in Vermont that I would move to, but I feel there are better places to invest for cash flow elsewhere.

Best of luck to you!

Graham

Originally posted by @Graham Mink :

Hi Michael,

Welcome to BP! You have found a great resource, and it's good to see another Vermonter on the site. 

I would have to disagree that South Burlington is a great buy and hold market for cash flow. It's a great market to buy and hold for appreciation, but the cash flow you get from a $300k duplex (if you get a deal) is minimal, you would be lucky to break even every month. While South Burlington has a strong chance of continuing to be a popular area to live in, and thus has a strong potential for property to appreciate, this is not guaranteed, and therefore in my mind any investment there is more speculative in nature and a little more risky than buying a property that from day one has a double digit Cap Rate and 30%+ CoCR. However, everyone has different reasons for investing in real estate and different goals, so South Burlington may be great for you, and not for me. It certainly is a wonderful place to live, one of only a handful of towns in Vermont that I would move to, but I feel there are better places to invest for cash flow elsewhere.

Best of luck to you!

Graham

Hey Graham,

I have lived in South Burlington all my life and see deals constantly. I have managed to make great cash-flow happen. The rental market is almost on par with Burlington, leaving me with little vacancy. While I will say I could never pull the 2% rule. I am pulling double digit cap rates on all my properties. My latest deal I got a small four bed single family, for 180K +10K in cosmetic updates. I pull a $2,100 a month. My expenses are low, with a take home of $700 conservatively. I see these deals all the time just in South Burlington.   

Originally posted by @Ralph Jensen :

whats your take on Williston VT. 

 Hey Ralph,

I Personally feel that all towns in Chittenden County have potential. The biggest obstacle I see in Williston is that so much of the pot is newer development, making Investment entry often difficult in our market. New development is crazy inflated (For instance the house built last year on the lot next to my house is a four bed 3 bath with 200 more sq feet. It went for 523K. My home I bought 3 month later is 23 years old and a 5 bed, 3 bath, for 315K. both lots are the same size.) This is't to say you can't find a deal, or make something work in your favor. Williston has lots of potential, good schools, all the area Box store conveniences, and is growing as a suburban sprawl from Burlington fast. I just like to stay in South Burlington cause I live here and I'm close to managing any issues. 

Hi Michael

I would not exclude Winooski from your searches.  Winooski is what it is but it typically has some of the cheaper prices yet high rents due to its proximity to Burlington and the supply and demand the seems to lean toward demand in Chittenden county.  I am closing on a 12 cap duplex on August 3rd for $185,000.  Also not to bet on appreciation but I feel Winooski has been on a SLOW but steady upward climb in regards to home value and rents which personally I would take over a market that swings both ways.

Best of luck


Grant

@Grant Lawrence , winooski is a pretty good market , the rents are a bit lower than burlington , but the cap rates are much higher . i bought a 4 unit last year , i offered 25k over list ( 5 offers ) and it appraised for $100k over my purchase price .  we also flipped a really trashed duplex a few years ago , we gutted it , rehabbed , rented for a few years and sold it for nice profit and made 700 month while holding it . 

pete

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