All Forum Posts by: Matt Vezina

Totally depends on the state and the rules can change depending on size of property, here in VT license required only for 3+ units.  If someone from Georgia doesn't chime in first you can find such regulations on the state websites, electrical regs may be listed under the fire protection office rather than building codes. 

If you post or PM me the phone number being listed I will try to find it on Facebook.  If I find I will flag it myself but the contact may have to come from you for the removal to stick.  Which may be frustrating because their system is more set up to handle people's names being impersonated rather than phone numbers, but there is a form for people without Facebook accounts to fill out in such a situation. 

Saving up reserves of operating expenses prior to purchasing anything would mitigate the impact of a vacancy.   Seems like the common recommendation is six months reserves.  

Where are you looking in VT that would produce a 40K ARV? Even way out in the sticks I rarely see less than 60-80 for updated SFH unless they are tiny.

I've heard good recommendations for Lima One, unfortunately Vermont is one of six states in the country they will not lend to. After some digging looks like Lending Home is in the same boat with a smaller service area. I've gathered from browsing a few years-old threads that the REIA scene is pretty dead. It's not a big state but people do live here and a lot of them rent, I just don't get it.

Right, I'm well aware of how our senator feels about people with money but not sure that he has a direct role here having spent mot of his career in national politics.  Either way I'm not really asking for Bernie Sanders commentary unless it is directly related to VT specific legislation that contributes to this.   There are many lenders on here, some focusing on New England area while still excluding Vermont.  Someone must have some firsthand insight?

Not that the answer will change anything just bugs my curious mind.. looking at all options as I head towards a first purchase in the spring and it seems like private money is effectively not on the list for any terms since almost everyone, even the "nationwide" lenders do not work in the state.  Thinking it must be something in the laws that makes it too complicated/expensive to do business here?  Definitely not related to heating costs in the hard winter since just about everyone's money is good across the border in NH..

To me it is laws that make it easier/faster/more profitable for landlords to conduct business.  Vermont seems to fall more on the tenant friendly side and a few examples are: 14 days for pay or quit notices, late fees cannot be charged in excess of the actual property expenses, if tenant abandons unit must hold  their non-trash property for 60 days in most cases, a few cities in the state the security deposit must be placed in an interest bearing account and that interest paid to tenant if deposit is returned.  

I agree with your point that landlord friendly only helps as far as the landlord's understanding of the laws.  I sometimes see posts to the tune of "my tenant's rent payment keeps getting later every month and now they've stopped answering their phone, what should I do?"  That could be coming from the most landlord friendly state in the country but it's hard to exercise rights you're not aware of.  

I know there is a component of "won't know till you apply" to both these questions but hoping to get some insight from folks who have seen a lot of mortgage applications. Looking to purchase either a house hack MFR or live-in rehab SFR around spring 2018 as my first investment. I work in maple syrup production so will be in a much better cash position after an early spring of seven day work weeks.. on to the questions

My credit union offers these "credit builder loans" where they hold a small amount of money either $500 or $1000 in a protected account and don't release any of it till you have paid the full balance off.  My situation is a little unique in that I already have 750+ credit so I would only be using this to expand the amount of history I have.  My entire credit history consists of one card I've held for nine years and a second I just opened earlier this month to increase my open lines and decrease my overall utilization percentage hopefully kicking that score closer to 800 once a few payments are reported.  The only car I've ever purchased was from my parents so of course those timely payments were not reported.  It's been suggested in the past that I will have a hard time getting approved with only credit cards on my history, but given that my score is already so high will having installment credit on such a small loan really make a difference in my application?  Will a lender see this for what it is, basically a pretend loan with major guardrails in place?  I don't want to pay one cent of interest on such a product if it won't really help my situation.  

My second question is probably tougher to answer until it's time to apply but I'm curious how holding high reserves relative to the purchase price may overcome spotty employment history.  Long story short I've spent a significant chunk of the last several years on long distance hiking trips getting mid 20's wanderlust out of my system, and that has created a paper trail that does not reflect my current desire to get serious about investing.  I've taken a big boy job that I will be at least six months into at the time of applying, annual income probably in the 36-42K range but a full year of that will not show up on a tax return until 2019.  The average of my 2016 and 2017 returns will probably be around poverty line.  Here is where the reserves come in.  Between a large chunk of savings bonds from my late grandparents and personal reserves I will be able to show at least $30,000 in reserves above and beyond my down payment.  Considering that  I'm looking at a price range of roughly $60-130K on houses might these reserves coupled with a solid reference letter from my employer and my excellent credit score have a fighting chance of overcoming the low income numbers from recent past? 

If you're looking at wooded acreage there may be value in the standing timber.  You could offset some of the purchase price through a selective harvest that won't destroy the recreational value you seek from the property.  Many states also provide generous property tax incentives for actively managing a woodlot though I don't know if Ohio is one of them.  If you pursue this option you should have a forester do a timber cruise to assess the total value of the standing timber and how much you could reasonably expect out of a harvest.