All Forum Posts by: Jaylan Archer

You can definitely use an FHA loan with 3.5% down to buy a four unit, but that is a limit. Past 4 units you are getting into commercial property and just about everything with loans significantly changes.

I would stay with FHA though. I know it is going to make your offer less competitive but the multi-family market in Dover already is super competitive. There's currently 4 active multi-family properties in Dover in a town of 33,000+ people. I'd try the off market route. Drive for dollars, find long distant property owners and start sending letters.

I just had some clients find a terrific four unit that was off market and definitely cash flowed well. They were able to use an FHA mortgage and didn't have to compete with a line of open house attendees.

Hey James! 

Great connecting with you. Would love to be a resource for you in the future.

I have worked with a few decent wholesalers in the area and these seem to be the most active out there.

NH Home buyers LLC

Eagle Creek properties

Blue Sky Properties

This really is a tough question to answer and can't honestly be answered without knowing two specific examples with numbers.

For example buying a distressed, off-market 4 unit could lead to a great profit if done correctly. Purchasing an on-market 4 unit that some people would consider only needing paint and flooring likely won't lead to a great profit.

In Southern Maine and NH I typically see the greatest returns in these projects being turned into condos and sold individually. Whether it is a new build or a renovation - the housing cost in the area is simply high. Sometimes splitting the property up into pieces and selling the pieces leads to a greater profit overall.

Hey Brett!

I'll echo what Clarissa said. 

I am on the east side of NH working along the seacoast of Maine and NH.

Would probably be best for you to find someone that is licensed in both Vermont and NH so that they have one point of contact. Happy to get them in touch with someone that is.

Hey Eileen! 

Super difficult to find owner financing right now but it is possible.

It sounds like it is a credit issue as far as not being able to qualify for traditional financing? 

Hey Cliff!

Great insight. I'm just curious, do you know of any towns that have started to tax STR's?

Hey Joe!

Congrats on starting the journey into investment property. I'm glad to hear you are working with an agent experienced in rental properties. Unfortunately many agents out there don't understand the dynamics with multi-family property.

Like others have mentioned - I would definitely go with the FHA, 3.5% route. That is by far the best way to get started in small multi family properties by owner occupying. I have found that typically the more units 3 or 4 the better in regards to cashflow using this method.

It's still a really strong sellers market in Maine and NH in just about all markets. You are going to struggle finding great rental properties that you are the only buyer offering on so getting your closing costs covered might be a tough thing to do. If you are able to find something off market that is likely the best option but also will take the most time.

I have had a lot of success sending out mailers, door knocking and looking up sellers on properties I knew I was interested in buying or had a buyer for. By far - the most important property an investor can buy is the first one. I always recommend a buyer wait on the good deals to find a great deal. 

Hey Sarah! 

This is a great question and I am sure not something that most STR investors would consider as they start building out their direct booking websites.

Are you looking for an accountant that is familiar with real estate short term rentals as I am not sure who else would be able to be of assistance for this.

Hey Lauren!

Definitely wouldn't hold me up in Maine or NH. Like others have said you can just side over it if it is just the siding. We haven't seen any regulation or restrictions about that yet but there is the possibility that codes could change for asbestos.

That is just for siding though - as obviously asbestos can be found in various places like flooring and insulation.

 You're not wrong! There's a huge push for inventory of single family homes as well as rental property. NH housing just did a study and found us 23,500 homes short of a balanced market. I know that is for single family homes but it is as equally as bad if not worse for rental properties. 

There is no great solution with the cost of land, development and construction for rental property. NH and the northeast don't typically see entire cities built like a Florida or Texas can. We don't have institutional investors or builders but there is a push for more housing.