Vermont REIA

[Jay Mitiguy]

Hey,

I'm reaching out in hopes of finding some fellow Vermonters who are part of this wonderful world of BP. I've been waiting anxiously to get involved in the Champlain Valley REIA, but the last two meetings have been cancelled due to low attendance. Are there any Vermont Investors interested in getting together for a meet and greet outside CVREIA? If so, message me on here and we can figure out a plan.

Thanks,

jay

[Jay Mitiguy]

As a VT native and investor in both VT and NC, I have to disagree with the general notion that VT is more complex than other states. It is often more expensive, and can be difficult to find qualified tenants, depending on your market, but legally speaking, it isn’t any more complicated than other states. Different, yes; complicated, not necessarily. 

While the legal system does lean in the favor of tenants, we are definitely not the only state with this set up and many, many people invest here successfully. It really boils down to finding a market with the right tenant demographics, and putting systems in place to properly screen prospective tenants. The eviction process can be expensive if you pay a lawyer, but you can save yourself a lot of money getting familiar with the process, the necessary documents and procedures to file. I’m far from the smartest person I know, and I can do it myself if I choose to save some $. I often buy distressed properties and have to evict the existing tenants upon acquisition and it takes around 3-4 months to finalize the process and regain control of your asset. If you’re investing in this style, build those numbers into your pro forma and plan for it in your renovation schedule. Problem solved! It’s all a function of proper planning and having adequate cash reserves. 

I would say the biggest hurdles we face, outside of the tenant friendly laws, would have to be the high cost of living and property taxes, however, the high rents achieved in more populated towns/cities does account for it. Overall, VT can be and is a great place to live and invest in, but it takes proper planning and good systems, just like any other investment.