All Forum Posts by: John McRae

@Jon Dumas

I have been looking in Exeter for a while. I've found taxes to be extremely high and kills my ROI. $7k on a duplex. Not to say other Seacoast community's are much cheaper but maybe slightly more reasonable. Still think Dover is best bet in the area.

While the property values in vacation condos did get clobbered in the downturn, the cashflow remained the same.  People still want to get away for the weekends to ski, hike, Storyland, etc.  And you could probably make the argument that during tough times, people will scale back and take "smaller, or more local" vacations, than say a trip out West skiing.  

That being said, vacation rentals do pose other challenges and are definitely less passive. Turning units over, laundry, furniture, HOA fees for condo, etc. I only have the one vacation property up north and rest of my investments are in southern NH.

@Oliver Salmon

Welcome Oliver.  Based on your location, you might also want to check out the vacation rental market.  You are close to several popular ski area's that have a large draw from the Boston market.  I have had some success in the North Conway area with vacation rentals.

@Jon Dumas

You may want to look in Dover, Newmarket and Rochester. Portsmouth is off the charts and would be nearly impossible to get a good return. I've had some luck in Dover but even that market is getting expensive. Biggest things to keep in mind is the quality of the tenant. Some of the neighborhoods can get rough the further out you get. 

There is an investor meeting  in portsmouth this coming Wednesday. 

I agree with @James S. and @Megan Frank.  When it comes to Somersworth and Rochester you are going to have more tenant issues.  I have yet to take those on, and probably only would if I had property management.  Also a concern there, is when the market corrects, those towns will get hit the hardest with regards to falling property values, etc.  I would be interested to hear peoples opinions on areas in southern Maine (Portland and south), as I am looking to expand my search area.

Kittery is basically a suburb of Portsmouth NH.  The immediate Seacoast towns it can be difficult to make the numbers work for an investment.  As you move away from the coast (even 15-20 min) there are some opportunities - Dover, Rochester, Somersworth, etc.   I have not ventured in the Maine market, mostly for tax reasons, but I suspect there would be opportunities as you head north toward Portland.  There is a local meetup group in Portsmouth that meets monthly.

https://www.eventbrite.com/e/nh-seacoast-real-esta...

I can not really comment on the Manchester area, as it has not been a focus for me.  I think there are probably more opportunities for multi's there, but just haven't analyzed any.  

Yes.   In the downtown Dover area, it can really vary.  Keep in mind, the classes are very subjective.  In my opinion, the Park street, NY St, Dover St (and towards Red's Shoe Barn) is a C class area.  There are some D class neighborhoods over by the tracks.  These properties tend to come up most often, but its out of my comfort zone.    It gets better as you head north toward hospital.  Also is better on the other side of Central Ave (the further north you get of 6th St).  Silver St area is B+ depending on street.  That being said....I believe you can get the best returns in the C class neighborhoods, just understand that it will be a little more work collecting rent, etc.

Rick - Just a thought, but have you check out Rochester?  If you were interested in the Park St property in Dover....that is a C class neighborhood, you may find similar a little further north.   I own a multi right around the corner in Dover, so am familiar with the area.   You may want to expand your search.

I would let the numbers dictate.  I think you can still break even in a 3.  You are correct in that very few multi's are coming up in the Dover area or the Seacoast in general.  I agree with James.....waiting for the perfect property in this area may take some time.  And there will be a lot of competition when they do come on the market.  Additionally, what I find is that most of these multi's are VERY old...like 100 years old and can require a lot of work.  Good luck with your search.