Should we hold or sell - Bartlett, NH 2 Family - Advise needed

[Marla Coletta]

Hi Everyone!  We are at a crossroads and have multiple options for a 2-family we purchased in February 2023 in Bartlett, NH.  We purchased it with the intention of living in 1 unit and renting the other unit as a short-term rental.  However, life events have made us rethink our plan (SO's elderly parent recently fell and broke her hip, needing more 1-on-1 care), so we not going to move to NH as planned (at least not in the near future).

What we are trying to decide:

1.) Sell the property and recoup the price paid plus what we have put into it so far: 1st-floor unit kitchen reno, repairs, etc.  (This frees back up the significant amount of money we have in the property, giving us more time freedom to help family member).  We are also both Realtors so makes this process a lot easier (just added a NH license to our existing ones for our planned "move")

2.)  Rent both units as short-term rentals - we have 2 other Short-term rentals, and hosting is something I love to do and do very well (we would have to furnish and decorate both units which seems like a lot right now).  Also, does anyone have experience renting out both units in a 2-family as a short-term rentals (1 unit on 1st floor, 2nd unit on 2nd & 3rd floor)?  Have you received complaints regarding noise from the other unit?  Our place is not the most sound-proof, but we are looking into adding more insulation to help with energy costs and noise transfer.

3.) Rent both units as long-term rentals.  (frees up more time, but won't net us as much as doing the short-term rentals).  We will cash-flow as there are not many LTR in the area and the place is in great shape.

We are usually buy and hold investors, but given our life situation,  holding this one seems like more time/work than we currently have.  Just looking for some advice/guidance.  This is a hard one and we are feeling overwhelmed. 

Thank you in advance! 

[Konstantin Ginzburg]

I think it will depend on what your immediate needs are. If you need immediate liquid cash, then selling might be the best way to go. But if you are still financially secure and don't need the cash right away then I would hold onto those properties for the long haul. As far as time commitment: one way you can free up your time while still retaining the property is to find a quality property manager that can take over the day to day operations of the property which can allow you to continue to collect rental payments while still freeing up the majority of your time to give to your family needs. There are property management teams that do both long and short term management. Look around your area and see if you find one you feel comfortable turning your property over to. 

[Stephanie P.]

Quote from @Marla Coletta:

Hi Everyone!  We are at a crossroads and have multiple options for a 2-family we purchased in February 2023 in Bartlett, NH.  We purchased it with the intention of living in 1 unit and renting the other unit as a short-term rental.  However, life events have made us rethink our plan (SO's elderly parent recently fell and broke her hip, needing more 1-on-1 care), so we not going to move to NH as planned (at least not in the near future).

What we are trying to decide:

1.) Sell the property and recoup the price paid plus what we have put into it so far: 1st-floor unit kitchen reno, repairs, etc.  (This frees back up the significant amount of money we have in the property, giving us more time freedom to help family member).  We are also both Realtors so makes this process a lot easier (just added a NH license to our existing ones for our planned "move")

2.)  Rent both units as short-term rentals - we have 2 other Short-term rentals, and hosting is something I love to do and do very well (we would have to furnish and decorate both units which seems like a lot right now).  Also, does anyone have experience renting out both units in a 2-family as a short-term rentals (1 unit on 1st floor, 2nd unit on 2nd & 3rd floor)?  Have you received complaints regarding noise from the other unit?  Our place is not the most sound-proof, but we are looking into adding more insulation to help with energy costs and noise transfer.

3.) Rent both units as long-term rentals.  (frees up more time, but won't net us as much as doing the short-term rentals).  We will cash-flow as there are not many LTR in the area and the place is in great shape.

We are usually buy and hold investors, but given our life situation,  holding this one seems like more time/work than we currently have.  Just looking for some advice/guidance.  This is a hard one and we are feeling overwhelmed. 

Thank you in advance! 

While they won't make as much, they won't take up as much time and if you're dealing with an elderly parent, time is going to be taken up with them.  I'd rent it long term for now and when you have more time to devote to the short term rental game, change strategy.  There's nothing that says you can change your mind later.

[Matt Lefebvre]

@Marla Coletta I don't think you should sell it unless you are desperate for the cash.  The Bartlett/Conway area is and most likely will continue to see growth as the region continues to become a year-round tourism hub.  Housing in the area is already at a premium and with many challenges slowing large scale development, I believe we'll see prices and rents continue to climb.  If you can hang on for a couple of years, you can either refinance out some of the equity (once rates drop) you will have built or sell while the prices are high and actually make some money on the sale.  

If you can employ a mix of a LTR and MTR strategies to rent to both locals and contract workers (traveling nurses, construction, even some higher-paid tourist related jobs) I think you'll find remote management won't be too bad.  If you haven't already established a relationship with a local handyman or contractor, I'd say that's your #1 priority.