Investing in Southern Maine/New Hampshire Seacoast?

Question

Hello, I am new to investing and will be buying my first house hack next year (hopefully). I would love a multi family. I currently live in New Hampshire, but have been interested in buying in Southern Maine. Though I am not opposed to New Hampshire Seacoast as well. I know we are in a seller’s market right now. So demand is high and supply is low.
What do you think will happen to the market next year?
What are some things I can do to stand out from other buyers? Should I wait until the market corrects? Any tips on buying in Southern Maine or New Hampshire Seacoast? Which towns are the best to invest in?

James S. · Answer

Hi Courtney,

For more of my expounding on the seacoast NH, please check my prior posts on the subject (I'm on mobile so trying to keep this brief).   Aaron above mentioned Farmington, Somersworth, and Rochester as good spots for investing. This can be true from a strict numbers standpoint, but as you want to be an owner-occupier, I'd suggest you look beyond just the numbers.

These are the worst towns in the seacoast from a reputation and crime standpoint (crime, relative to the nation as a whole, is low everywhere in NH however). There are great investments there to be sure (I am negotiating one right now in Rochester), but if you are going to house hack I would implore you to make sure you know the neighborhood you want to buy in in those towns very well. Generally no one who rents in these towns is living there if they could afford somewhere else in the seacoast, like Dover, Durham, Portsmouth, Newmarket etc.

If you end up buying a rental on Lafayette St in Rochester or Green St in Somersworth...I don't think you are going to enjoy your time there. I know I wouldn't want to live in C/D areas with C/D class tenants sharing walls with me. Here's an example of what I mean. Go to 5 Lafayette Street in Rochester on google maps, and look at the street view of that area. Then tell me if you want to live there. Out of town (or as is more usually the case, out  of state MA investors) are making very good money in downtown Rochester. I know a few who do so personally. But I also have plenty of stories working for a property manager that worked on these types of areas in these towns. Missing doors, missing toilets, animal and human feces on walls and floors, piles of diapers, drugs, guns, police, police, police  etc. You're gonna need a strong stomach. Or maybe you'll get lucky, who knows.

I am not attempting to dissuade you wholesale from these areas, but just to think critically about them. There's money to made in Berlin too, but I don't see that being thrown around as a great place to house hack. The numbers for an absentee investor and one who is going to live there are not apples to apples. It's easy to pass off low end tenant management to a property manager; it's another thing entirely when you share a house.

I'm on my phone so I've tried to keep this brief. Again I've said much more about this area in the past. Hit me up if you'd like to chat further.

Aaron Montague · Answer

Hi @Courtney Stevens. Welcome to BP :)

This is a good market for everyone right now.  My company is actively buying in the area you are talking about and I would love to have another caring landlord bringing up property values for everyone.

Open realtor.com and search multis with 3+ bathrooms within 5 miles of Rochester NH.  Most of them are going to be good or better grade house hacks.  The towns I'd focus on are Somersworth, Rochester and Farmington.

If you find a place that looks promising, post it to the forums and we can help dissect the details.

Cody Barna · Answer

Hi @Courtney Stevens there's a lot of good areas in NH to invest, from Salem all the way up to Lincoln. A big factor is whether you'll be renting the additional unit(s) short or long term, that can greatly effect the potential returns. Finding an area that is relatively close to major employers can make a big impact long term. Where as being in close proximity to summer/winter attractions can effect occupancy short term. Property values are going up extremely fast right now, but interest rates are so low that it helps to offset it. Regardless of market conditions it comes down to the numbers and determining what makes sense based on your criteria. If I can help you in anyway don't hesitate to reach out.

Megan Frank · Answer

Rochester and Somersworth are fine. We love it here! Just don't do the tree streets (pine, maple, chestnut, Lafayette too.) We're off charles,  it's been great! We have really great neighbors too! Good luck!

Investing in Southern Maine/New Hampshire Seacoast?

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