Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Vermont Real Estate Q&A Discussion Forum
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 4 years ago on . Most recent reply

User Stats

95
Posts
29
Votes
An Duong
  • Boston, MA
29
Votes |
95
Posts

Seeking Vermont Multifamily investing advice!

An Duong
  • Boston, MA
Posted

I am thinking of investing in a multifamily 10+ units in Vermont. Looking to network with other investors with experience in that market. How are landlord tenant laws (How long and how much does it take to evict a bad tenant). How are the cap rates? Would you recommend Vermont for a first larger mulitfam (Largest multifam I investing in is a 3fam).

THX!!!

Most Popular Reply

User Stats

1,093
Posts
755
Votes
Mark H. Porter
  • Investor
  • SC NC, VA
755
Votes |
1,093
Posts
Mark H. Porter
  • Investor
  • SC NC, VA
Replied

@Benjamin F DeCarlo good morning, Ben.  We’re fortunate that property taxes are a pass-through here in Burlington.  I simply divide the increase across each unit proportionate to number of bedrooms.  I also let the tenants know why and if they have an issue then they should call their state representative.

I found cap rates are almost exactly the same as they were 10 years ago.  You’ll pay 6’s near downtown or the college/hospital and 7’s in the old north end.  Of course, that’s staying within the same class of asset.

The trick, as in any market, is truly knowing how to increase cash flows.  If you buy a turnkey property the value is in the appreciation.  If you buy a property where rents are 10%+ under market, either due to a landlord complacency or needing lipstick, those are the gems and they’re out there.  Those are the ones where you need to spend $5k per apartment in order to raise the rent $125 per month.  That’s a little over a three year payback!

Burlington will always be a good place to be a landlord.  No matter how many apartments get built in the outside areas you’ll always own apartments where everyone can walk to work or Church Street.  I still get dozens of calls per vacancy and they’re gone in days.

You’re on the money in suggesting the pay attention to your numbers.  Cap rate is merely a cut-line that will get you interested.  From there it should be about either appreciation (class A asset) or cash flow (class B or C).

Loading replies...