Thoughts on Laconia, NH & northern NH?

Question

Hey Granite Staters,

I’m considering investing in the Laconia area, and possibly up in the Whites as well. What are your thoughts on investing in the area in general for STR, LTR, filling units, the economy and projected growth of those areas, etc. Would I have problems filling STR or LTR? Is there a good amount of support in the area in terms of agents, property managers, etc.

Any input is appreciated, thanks in advance!

Jesse

Kyle Lacasse · Answer

@Jesse Cote From my current experience, being a local PM, there is still a housing shortage here in the Lakes Region.  Also as an investor I’m actively looking to purchase more for myself,  after seeing the demand while listing units for owners I serve.  I don’t handle STR, so can’t offer any knowledge there, but feel free to reach out if you need any help with long term rental investments, whether it’s purchase or managing, I’ll help where I can.

John McRae · Answer

Short term rental market is strong in White Mountain area’s. I’ve had good luck in Bartlett. Strong winter and summer. Shoulder seasons can be very slow so need to factor that in. Also, keep an eye on regulation changes in the works in Conway. Definitely more regulation coming and will likely spread to neighboring towns.

Julian Sage · Answer

@Jesse Cote not sure about your specific location for STRs as i haven't done the market research there, but first check regulations, second check comparables.

Shane Cloutier · Answer

One of the biggest problems the northern end of the state is having is a lack of competition in the property management department. NH's laws make it difficult for us to expand that market so make sure you shop around before you invest or you may find yourself having to manage the property, or clean up the mess left by poor managers.

Alecia Loveless · Answer

@Jesse Cote I am a bit further north in the Whites in the Littleton area. A good percentage of the SFH market and even some of the 2-10 unit MFHs have been converted into STRs. It is now a lot more difficult to find decent LTRs as a tenant.

There is definitely a market for that type of property either STR or LTR but you need to develop your network and be ready to move quickly.

With the STRs in my area we’re close to two ski mountains in winter but you can drive to about 4 more in 45 minutes, then hiking and four or five golf courses in summer if you are good at marketing, foliage and again hiking in fall, and spring is mostly a bust.

There’s always tax free shopping, Conway is a 45 minute drive with all the outlet shops, Canada is 45 minutes once the border re-opens and we’re a day trip to much of Vermont and Maine.

Matt Savage · Answer

I have a STR in Gilford, and I'd have to say it's been fantasitc.  I use it for my family as a ski lodge, and rent it out to pay for itself.  Word to the wise - you really need to know your numbers and understand what you can charge.  I see many youtube videos discussing how you can make 3x what a typical area rent would be...I haven't seen those numbers, but I can say many months I do make more than a normal rental rate in the area.  The downside is that I also carry all the expenses for the property; the renters do not pay the electricity/heat/trash removal/plowing/lawn care/etc....so think of the numbers!  In the Lakes Region, and Gilford especially, there's a lot of competition....analyze what they offer to get an idea of what you'll need to do in order to get a piece of the market share.  Also - it is very important to take a longer-term view of your STR business to ensure that your tenants don't wind up giving STRs a bad name...resulting in issues with the town, and/or neighbors.  Please reach out if you'd like to discuss further, I get super excited with this stuff and hopefully can help provide some insight.

Richard Dale-Mesaros · Answer

Any time you're considering STR, keep in mind that you may have to change your business model if condo associations or towns curtail the ability of property owners to do Air BNB, whether it's switching to LTR or selling - does the property you're buying work well for LTR or resale as well? I have four clients who do STR and I'm based in the Western White Mountains/Lakes Region - feel free to reach out!  :)

Jake Brown · Answer

I too am curious about investing in the Lakes/White Mountains regions of the state.  My understanding is that Laconia may not be the best for LTR, but I am not sure about STR.  We've been looking in the Conway-area for STRs but I am curious to hear what the vets here have to say :)