Real Estate investors from across the country are flocking towards properties in Vermont to build rental property portfolios. The Green Mountain State is a current favorite of real estate investors due to many factors. These include a strong economy, affordable prices and stable rents! Easy Street Capital is proud to be a leading provider of loans for rental properties for real estate investors looking to build rental portfolios in Vermont!
Types of Loans for Investment Properties
When it comes to real estate investing in Vermont, there are many markets and types of investment property loans to choose from. Vermont has a lot of older properties with great bones, but in need of renovators to restore them to their former glory. For investors adept at rehabbing older properties, hard money renovation loans are a perfect choice! These loans allow you to buy a property quickly and finance your rehab costs as well! Once you are done, you can either “flip” the property for a quick profit or pursue the BRRRR Strategy by renting it out and then refinancing into a long-term, low-rate DSCR loan!
Long-term DSCR Loans are also great for investing in turnkey rental properties. Turnkey refers to properties that are rent-ready and require no renovations. Move-in ready single-family homes and fully furnished short term or medium-term rentals are great for cash flow and price appreciation. Most DSCR Loans are fixed rates for thirty years, locking you into a fixed interest rate for the long-term. While, if historical patterns continue, rents and appreciation increase steadily each year. Bottom line, debt costs stay the same while cash flow increases!
Where To Invest In Real Estate In Vermont
Vermont is a favorite market for real estate due to its unique options. Burlington, Vermont’s largest city, offers a diverse real estate market with attractive investment opportunities fueled by its vibrant economy, cultural attractions, and proximity to Lake Champlain. Montpelier, the state capital, provides a stable market driven by government, education, and healthcare sectors. South Burlington presents enticing options with a mix of residential and commercial properties, including a growing retail sector and convenient access to the airport. Rutland offers affordable housing options and a robust rental market, while Stowe, known for its picturesque landscapes and world-class ski resorts, attracts year-round tourists, making it ideal for short-term rental investments.
Burlington
Burlington, the largest city in the state, offers a dynamic real estate market with enticing opportunities for investors. This city has a population of 45,000 residents. The city’s diverse economy spans sectors such as healthcare, education, and technology, supported by notable institutions like the University of Vermont Medical Center and the University of Vermont.
Real estate investors in Burlington can take advantage of the thriving demand for both long-term and short-term rentals. The city is home to the University of Vermont, attracting a large student population and creating a consistent need for rental properties.
According to Zillow, Burlington possesses a compelling rental market, with the median rent reaching $2,100 and showing a $200 increase compared to the previous year. This upward trend indicates a strong demand for housing in the city, presenting an excellent opportunity for investors to diversify their portfolios in the thriving East Coast market.
Burlington’s vibrant downtown area is filled with shops, restaurants, and cultural attractions, including the Flynn Center for the Performing Arts and the Church Street Marketplace. With its scenic location on the shores of Lake Champlain and proximity to outdoor recreational areas, Burlington attracts both residents and visitors, creating a strong demand for rental properties. The city’s thriving tourism industry, anchored by events like the Burlington Discover Jazz Festival and the Vermont City Marathon, further enhances its appeal and presents potential for short-term rental income.
Montpelier
Montpelier is nestled in central Vermont and serves as the state’s capital. The city boasts a diverse economy, with a focus on sectors such as government, healthcare, and education. With an impressive unemployment rate of just 1.6%, significantly below the national average of 6.7%, Montpelier offers a stable and prosperous environment, making it an ideal destination for renters and a promising market for real estate investors.
Real estate investors can find investment opportunities in Montpelier, with the median sales price for a single-family home in March 2024 at $475,000, according to Redfin. In addition, Zillow reports that the average market rent in Montpelier in April 2024 was $1,675 per month, making it a lucrative market for rental properties. Investors using rental loans can take advantage of low-down payment options and earn substantial cash flow with potentially high cash-on-cash returns.
Montpelier also boasts a vibrant arts scene, with notable attractions such as the Montpelier City Hall Arts Center and the T.W. Wood Art Gallery. These cultural venues provide engaging experiences in the realms of visual arts and creativity. The city’s strategic location in the heart of Vermont, coupled with its charm and natural beauty, attracts visitors throughout the year, creating a robust market for short-term rentals. This combination of cultural offerings and a prime location makes Montpelier an enticing destination for real estate investors looking to tap into the thriving short-term rental market!
South Burlington
South Burlington is a vibrant city located in Chittenden County, adjacent to Burlington, with a population of over 20,000 residents. The city boasts a diverse economy, with key industries such as healthcare, technology, and education driving its growth. The city is home to several major employers, including IDX Systems, iTech US, and Heritage Aviation offering a robust job market and attracting professionals and students in search of rental properties.
South Burlington offers nature enthusiasts a wealth of outdoor experiences, with picturesque trails and breathtaking views at places like Red Rocks Park and Wheeler Nature Park. History buffs can explore the city’s rich heritage at the South Burlington Historical Society Museum. The city is also home to a thriving arts scene, with galleries and cultural events hosted by the South Burlington Arts & Culture Council. Visitors can indulge in shopping at the University Mall and savor culinary delights at the diverse range of restaurants. With its natural beauty, cultural attractions, and vibrant community, South Burlington is a captivating destination for both locals and tourists.
South Burlington presents favorable prospects for real estate investors, offering affordable investment opportunities. In terms of rental properties, South Burlington boasts an attractive market, with an average monthly rent of $2,700, as indicated by Zillow. Investors can capitalize on these factors, leveraging rental loans to optimize their returns, thanks to low-down payment options and the potential for substantial cash flow and impressive cash-on-cash returns.
Furthermore, South Burlington is a sought-after location for short-term rental investors. The city hosts a range of annual events, including the South Burlington Summer Concert Series and the Vermont Balloon & Music Festival, drawing in a steady influx of visitors.
Rutland
Rutland is a dynamic town located in the heart of the Green Mountains, with a population of over 15,000 residents. The city thrives on a diverse economy, with industries such as healthcare, manufacturing, and tourism playing significant roles. Rutland is home to esteemed companies like Rutland Regional Medical Center and GE Aviation, which contribute to the local job market and provide stability for residents seeking employment opportunities.
Rutland’s downtown area offers a charming and vibrant atmosphere, with a variety of local shops, restaurants, and cultural attractions. The town’s historic Paramount Theatre is a hub for entertainment, hosting a range of performances and events throughout the year. Rutland is also known for its picturesque parks and recreational areas, including Pine Hill Park and the Vermont State Fairgrounds, providing residents and visitors with opportunities for outdoor activities and leisure.
The city’s central location in Vermont makes it a gateway to explore the stunning natural beauty of the surrounding Green Mountains. Outdoor enthusiasts can enjoy activities such as hiking, skiing, and fishing in the nearby Killington Ski Resort and Green Mountain National Forest. Rutland’s rich history and community events, such as the Rutland Winter Fest and the Vermont State Fair, add to its cultural charm and make it an appealing destination for residents and visitors alike.
Stowe
Stowe with a population of over 4,400 residents, is a picturesque town nestled in the heart of the Green Mountains. Known for its scenic beauty and outdoor recreational opportunities, Stowe attracts visitors year-round. The town’s thriving tourism industry, driven by its proximity to renowned ski resorts and the stunning landscapes of Mount Mansfield, creates a favorable market for real estate investors interested in short-term rental properties.
Stowe offers an array of outdoor activities, including skiing, snowboarding, hiking, and mountain biking, making it a sought-after destination for adventure enthusiasts. The town’s charming downtown area is lined with boutique shops, restaurants, and art galleries, providing a vibrant atmosphere for residents and visitors to enjoy.
With its captivating natural surroundings and vibrant tourism industry, Stowe presents an attractive opportunity for real estate investors seeking to capitalize on the short-term rental market. According to AirDNA, the average projected annual revenue for a short-term rental in Stowe is $79,400, indicating a strong investment potential. Along with the town’s high rating for “investability,” Stowe stands as an enticing choice for investors looking to maximize their returns.
Investors who leverage DSCR loans from forward-thinking lenders like Easy Street Capital, which consider AirDNA projections to qualify the property’s income, can enhance their cash flow and unlock the full potential of investing in Stowe’s thriving real estate market.
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Ready to invest in real estate in Vermont? Easy Street Capital is Vermont’s best provider of loans for rental properties for both hard money rehabs and long-term rental properties.
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