All Forum Posts by: Megan Phillips

Thanks, Mike! 

Yes, I expect to potentially use FHA financing and expect to pay PMI insurance. There are some down payment assistance plans in VT, but I haven't seen any grants necessarily, and unfortunately, the lender I'm pre-approved through is not on the list of lenders/banks that allow for one of the assistance programs I've seen (gives you 0% loan on $5k for down payment help), but I'm still looking.

I'm estimating 5% for down payment in my analytics, but if it was closer to 3%, that would be great.

I'm looking at  3 or 4 unit properties, just because it's faster equity/more cash flow than a duplex would allow for, I'm also okay with owner-occupying for a year.

I was expecting about $500 for an inspection, I'm not sure what an appraisal costs in VT, hopefully not $500 also, but it's a requirement anyway, so I'll pay whatever is necessary.

Property management prices around here I think are in that range also - totally worth it in my opinion!

Good luck in your property search, I'm going to look at 3 places today after work!

Megan

Hi all - so some good news, I am officially pre-approved for a mortgage so I can begin to check out some properties (in VT) with a realtor once I select one! I'm not entirely sure I've got what I need for down payment/closing, but I'll cross that bridge when I get there!

What are some things you wish you would've looked for or known when you were a first time buyer for a multi-unit (even for single family homes)? Maybe not necessarily physical structure related (but I'll take those too) - maybe just a hiccup along the way that you didn't consider thinking about, just so I have expectations/preparations. 

When you purchase a property - do you let leases continue or always get your own tenants?

When did you create your LLC for your property (and any other tips about how to keep yourself/business organized) - before you purchased? Should I be doing that already?

I'm pretty sure I'm going to use a property management company for dealing with a majority of the property issues - pros/cons

Literally any other info you think is useful for someone that is BRAND NEW to the real estate investment game.

Thanks, happy Monday!

@Account Closed -- I lived in Ludlow (I still visit at least yearly for one of my favorite restaurants) for a couple of years after college, summers are definitely slow there, and winters are busy with lots of out of staters. They have great foliage in October (you can drive right to the top of the mountain). They are similar to other ski resorts where they try hosting summer events like little concerts and a beer fest, weddings, etc., and have tried to expand their outdoor summer activities (like a mountain coaster/and possibly zip line by now)  and like any other mountain, trails/hiking/biking are summer activities, but there isn't much else. I'd sell it as just pristine laid back VT. Also I'm not sure where the local of the property is - but about half of the main part of that town was under water during Tropical Storm Irene in 2011, so if you're looking on/around main street I'd make sure to be extra careful of flood damage. If it's up in the hills out of town (most of the condos are), it's perfect, and gorgeous in the summer. Definitely a safe area also. A little dingy, but most VT towns are to some extent.

Yeah, I think it's more mental than anything - the 300k properties are in better shape and generally in higher populated areas, but if the income isn't there (it generally isn't twice cheaper properties to justify price) , it just isn't going to make sense to get something out of budget and just hope it works. However,  the cheaper properties that potentially need work and don't look as nice are scary in their own way as a first time buyer!

Thanks, Michael. I'd love to chat, I'd like to get as much information from local investors as possible.

I would definitely be interested in that! A couple people that work with me in Burlington commute from Barre/Montpelier area. Definitely do-able.

Thanks Tom, great info! I do check out other areas, the only issue is I'm planning on using owner occupied/FHA for the first deal so I won't need as much for the down payment, so it needs to be at least commutable for now. There are always cheaper properties in Barre it seems, what's the tenant quality around there? I'd love to chat about your investment strategies and how you got started over a nice VT beer sometime! Thanks again.

Yes - Burlington area and surroundings is VERY expensive. I've been looking at multi family units all over the state (just to get familiar with prices). When I try to analyze properties in Chittenden county the cash flow is usually negative or miniscule. I have been looking outside of the area but I'm afraid maybe demand isn't high enough for good vacancy rates? Without knowing a contractor or having a "team" in place I'm afraid of biting off more than I can chew being new to everything if places need work.

New to real estate investment - looking to invest in multi-family units to start and go from there!

Anybody with experience in VT?

Thanks Eric - I was considering other markets, but with it being the first property, I think I want it local until I have a better understanding how it all works before I would want to invest in an area I'm unfamiliar with/wouldn't be local to.

But - point taken!