How to start in expensive areas

[Megan Phillips]

Good afternoon!

I have been reading books/forums and have attended some local Investment info. groups near me, I know that investing in rental properties (owner occupied to start with an FHA loan most likely) is what I want to do (rather than spend the same amount on a house...) - I have also been perusing zillow, trulia, and a few others sites just keeping tabs on multi family units in Vermont.

Here's the thing. In Vermont, real estate is pretty expensive, along with taxes, plus there's winter, so heat and other costs come into play. When I try to analyze multi-family units, it's not uncommon for the monthly incomes to be near break-even or even negative in a lot of cases, or the properties are just TOO expensive. Minimum price in any "decent" area near where I work is 250k+, most are closer to 300k+. 

Do people in expensive real estate markets have advice, or is it simply suck it up, and save money until I can afford something in that price range?

Thanks!

[Megan Phillips]

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.