All Forum Posts by: John McRae

@Brett C.  I have had investment property in Dover for some time, so I am comfortable with the market.  It can be very difficult in the Seacoast to get over 1%.  On my latest property I have taken a chance on a C neighborhood because it was the only place I could find the return.  Still too early to know how it will work out with regards to quality of tenant, turnovers, etc.  In Dover, (like many communities) you may have an A or B neighborhood within a 100 yards of a C or D neighborhood, so it is very important to know the specific streets.  

@Deborah N.  Good luck with the new place near Winni.  My family spends a lot of time there during the summers!  I have a vacation property in the White Mtns, North Conway area and have had success using both Homeaway.com and Airbnb.  It is not difficult to manage a vacation rental, but you must find yourself a reliable cleaning person or company to do your turnovers.  For bookkeeping, I use Quicken, but I know there are many other ways to easily track income and expenses.  

Best of luck.

Stephanie,

I have experience with the Homeaway.com and Airbnb models in NH....but only in the White Mountains, North Conway area.  For Lake Winni area, my concern would be the winter months.  Other than Gunstock, there is really not a "ski" community to drive any significant business.  That being said, I don't think you would have any issue getting premium rents for summer months which may more than makeup for slow times in the offseason.  I think searching Homeaway for similar properties that you would be interested in and reaching out to owners would be your best bet for getting some average rental rates, vacancies, etc.  If you need any input on the Homeaway or Airbnb, would be heppy to share my experiences.

Good luck.

John

My opinion is that there is still opportunity for a reasonable deal in Dover and Newmarket. You are not going to find anything close to the 2 percent mark...but you can find a property that will provide good cash flow. These are base hits and not the home runs that you hear about on the podcasts. I have been hesitant to broaden my search to somersworth and Rochester...just not comfortable with the quality of tenant. What are people's thoughts on Eliot and Kittery?

Colin,

Welcome to BP. I am also an investor in the Seacoast area and focus on multifamily. You are correct in that the 2% rule will be nearly impossible to find on the MLS. I too analyze about every multi that comes on the market. I recently closed on a duplex in Dover that is about 1.5% after I adjust up to market rents. For me, the cash flow is good and the property needed minimal repairs....and there is a strong possibility of converting this 2 unit to a 3 unit, so a lot of upside potential.

I have not yet explored doing any mailings, but that might be my next step once I get this one stabilized.

John

I have had a STR in the White Mtns for last 15 years that I have rented on Homeaway and Airbnb. I also own several multi families in southern NH. I am in agreement with Troy's comments. Once you factor everything in....STR is lot more work than a traditional rental and not passive by any stretch. There are a lot of vairables that can swing expenses dramatically from year to year...such as cost of oil/gas, HOA assessments, and how snowy the winter (last year was horrible and impacted rents). The only reason we keep the place is because of the enjoyment we get out of it by using it for skiing, etc. If I was looking at it from strictly an investment perspective, the money could be used better elsewhere.

One other expense I did not see you had listed was NH rooms and meals tax of 9% which is required for a short term rental.  

Just my 2 cents...

Hi Maddy,

Yes, I believe you are spot on.  I think you will have better luck finding deals "over the bridge" than in Portsmouth.  I happen to like Dover out of the communities you mention, but I am sure there are deals to be found in Newmarket and Somersworth and Rochester.  Good luck on finding your first property.

@Kristopher K.

Thanks for the input.  Your option 1 and 3 is exactly what I want to present.  Is it customary in owner financing to align with going bank rates?  or provide a little extra?  

@Christopher Richardson

Chris,

Thanks for the comments.  The guy I am negotiating with is very old school, so not very forthcoming with info.  I am fairly certain he would like to get out of landlording and I would like to show him a path where he can collect income financing the property to me without the headaches.  Also, show him the benefits of not getting hit with capital gains tax.  I was planning on putting some spreadsheets together, but instead of recreating the wheel, thought someone on BP could assist.

Chris Weaver Vacation rental is in your neck of the woods. Bartlett. Is there any market for long term rentals in Mt Washington Valley?