New Hampshire or Massachusetts?

[Richard Villandry]

Hey BP,

I'm currently living in the North Shore area of Massachusetts and I'm trying to get some input on which state would be best for buy and hold. I grew up in southern NH and love the area but currently in MA due to work. My question is what's some pros and cons about investing in NH or MA?

Thanks for the help!

Rich V

[Shaun Reilly]

Richard is right that there is a lack of inventory in Southern NH but it is as bad if not worse in Northern MA so that probably isn't a major factor between those 2 areas.

Prices will usually be a little higher in MA but the rents are too.  Though I don't think it scales so dollar for dollar NH is probably a little better on the ratios.  Property taxes are usually at a relatively higher rate, but usually on lower assessments. 

I'd say the 2 biggest factors are that MA is probably the most tenant friendly state in the country.  NH isn't any kind of landlord paradise but relatively speaking it is much better to be a LL up there.

Other factor is where do you actually live?  Says Derry so if you are still living in NH and just working in MA there is so advantage to investing in NH as you will not have to pay MA taxes on any profits.  Of course double edge sword if you have your properties set up to show a paper loss you can't take the losses either.  This is a bigger consideration if you were doing flips since you would in fact be paying LOTS of taxes on that income.

Oh last factor is if you are going to use an LLC to hold the properties you are paying $500/year minimum for the honor of having one in the Commonwealth where it is cheaper in NH (Not sure the number but pretty sure it is less than half that).