Newbie from Burlington, Vermont

[Naomi Delabruere]

Hello everyone, 

I am Naomi, a newbie from Burlington Vermont. I have no experience or background in the real estate industry but I am ready to jump in and learn. I initially became interested in the benefits of investing after reading "Rich Dad Poor Dad" several years ago. At the time I was a junior in college with other priorities and a not-so-strong financial position. 

I currently work about 30-34 hours a week as a dental hygienist and have for the past three years. My recent completion of a BS in business administration has freed up a lot of time. No longer being a student, I'm looking for a new challenge! 

I'd like to spend my time doing something that is both lucrative and enjoyable. My goal in real estate is to establish passive cash flow equivalent to or greater than the expected salary in my current field. My financial goal is to reach $100,000 yearly in passive cash flow by 2025.

My beginner plan involves acquiring a small multifamily in the area, living in one unit and renting out the other units. In the meantime, I plan to complete my real estate salesperson licensing requirements, which I have already begun. I expect to use traditional financing through FHA with 3.5% -5% down and an interest rate of 3.8%. I looked at my first property this week!

I'm not sure that investing in Vermont is a good idea, considering the population growth is negative. The legislation here is not conducive to new start-ups and I do not foresee any large employers moving here. A typical 3 bedrooms 2 bath sells for about $350,000-$400,000 in the Burlington market. I'm not sure it can get any higher! Can I expect there to be any inflation (not that I am relying on that)?

I'm very lucky to have found this amazing community of people and I'm excited to interact more with all of you. I absolutely love the podcasts (while feeling slightly bad for anyone who lives in Detroit)!

[Tom S.]

@Naomi Delabruere  Welcome to BP Naomi!  Lots of good info and contacts here on the site.

Your plan sounds like a good one.  I've been investing in VT for about 15 years now...certainly there are pros an cons. 

Yes, population growth is minimal, winters are tough on houses, taxes are high.  That said it's a beautiful place and Burlington has lots of strong businesses (all the colleges, medical centers, banks etc).  Appreciate is decent for the rental market is very strong. Extremely rare I have a vacancy for more than a week or two. 

I also know and trust many contacts in the area, which is huge if I can't be on site to check on something.  That's one of the main reasons I haven't moved to investing out of the area.  You can also check other towns like Montpelier and Waterbury, with strong markets but better prices.

Good luck!

- Tom