All Forum Posts by: Joe E.

Interesting question: my zip code with ~ 30,000 folk shows via Zillow having 2 condos under $200k. 

@Blair Knowles : Thanks for the banking tip! 

@Emmanuel Tejeda: Thanks for the BP recommendations! I'm marching through BP's material. 

@George Griffeth: I moved to Burlington area some months ago, and have driven through Rutland more than a few times. From the lens of a REI newb, I've been reviewing various regional and state info re: RE & economic about Vermont. 

IMHO - It does seem that VT has been around or just under a population plateau for some recent years. 

Source: https://www.burlingtonfreepress.com/story/money/20...

Now, as to REI in VT? Heh, that's a good question & something I've been mulling on. I work here in Burlington area which is the state's main county (Chittenden County) & is the economic engine of the region & is in growth mode. This area is very rental heavy, and it's residential purchasing & rental prices are above national averages. I scoped out Rutland after your introduction, and that area's prices & rentals seem to be much more reasonable. Also, came across this article re: Rutland which does make sense from what I've seen as I've driven around parts of the state -

Source: https://www.burlingtonfreepress.com/story/money/20...

Thinking from a REI & plain budgeting perspective, I am going to focus on a 3-4 multi unit, if nothing else than to reduce current rent budget. To be honest, the rehab spooks me a bit as Burlington proper has loads of really old homes (100+ years), so I'm prepping myself for that hit ... but honestly, that's Future Joe's problem. First, I got to find a property where the numbers work, then make offer with plenty of contingencies.

@Tom S.: Thanks so much! Seems we're in the same neighborhood. I'll DM you.

@Andrew Syrios: Thanks!

@Kerry Baird: Ah, thanks for the tip! I haven't done this before so wasn't sure on process, but just picked up from the multiple podcasts that investment properties need their own LLC. So since property's already under personal name, seems it would be to re-fi & then transfer.

Question: How does commercial & residential financing differ? I figure it's more in the 20-20% down payment & likely a higher % rate. Anything else?

I reflected on your question, if I would buy this place again. Admittedly have some emotion attached to it, since I lived there for 15 years. And yet, I know the furnace is going to need replacing in the next 5 years ... pretty much do a happy dance every year when we fire up the heat to test it. I got a rough estimate some years ago of several thousand to replace, which would wipe out more than a handful years of cash flow as this stands. 

So looking at the numbers: ~$10,000 out now to finance first deal, or effectively buy a new furnace soon & eventually aim to hit $110-$125/mo cash flow after that. With that, I don't think I would purchase this as the deal seems 'meh' at best, with impending CapEx to for eventual so-so cash flow.

@Megan Phillips: Thanks, and nice going on your first property! How's your experience thus far?

@Dmitriy Fomichenko - Thanks! So seems you are in the area of financing which I'm not very familiar with: 401k + IRA leveraging. I get the highlights (got funds, so leverage them via their respective rules + processes), and yet am parking this in the "learn something new everyday" column".

@Deborah Du Plessis: Thanks! Admittedly I'm a recent transplant from MI so still feel the newb factor, however been enjoying VT, the area & it's people really well thus far.