Greetings from Vermont

[Megan Phillips]

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

Anybody with experience in VT?

[Andrew Schlessinger]

Had to jump in on this thread as I'm looking to expand a bit from Baltimore, Md.  I've been doing this for about 4 years and I've found that those investors that take the formulaic approach last the longest.  Without hitting the 2% rule (and the corresponding 50% rule), your money is at too much risk.  If something goes wrong, you don't make enough from the investment to cover the costs, which means you have to dig into your personal finances (which means it's earning a negative rate of interest and not a good investment).  That being said, 2% is the goal and you should get as close to it as possible.  I'm currently averaging about 1.75%, but it's not too hard to get to the 2% rule here (Baltimore) if you own in the right neighborhoods.  Those areas are very lucrative.  I wouldn't worry too much about the neighborhood if a) the numbers work, b) it'll rent, and c) you get a good property manager.  Getting properties in tough neighborhoods is a great way to get started...and stay in the game as an investor.  You can avoid whole sections with board-ups, but don't be too afraid to look at lower income areas.  Remember, you CAN provide quality properties to low-income families at market prices with much less investment than you can in an expensive neighborhood.  You're property manager will handle the rest.