All Forum Posts by: Matt Herbert

In NH, I believe it varies from town to town exactly how things are handled. I purchased a vacant lot in a NH town at a tax auction in 2019.

In that town the clock starts when they send out the first tax bill for the current year (in this case May). If the owner has not paid taxes by  the following years tax cycle (again May in this case), then they give the owner 2 years and a day to pay the back taxes (all the while assessing penalties and fees). If after this period is up, there has been no attempt to pay, and no communication, then the town will simply take the property. 

In that particular town, they usually wait till they have at least a couple of properties and then do a public auction (once a year, always in September). 

My understanding is that the former owner has 3 years from the date the Town records the quit-claim deed to come back to the town and reclaim the property (by paying all back taxes, fees, penalties etc). After that 3 year period the former owner looses all rights to the property. I'm not sure what happens if the property was sold at auction before that 3 year period ends, and the owner comes back to take the property?

It's also worth noting that there is a 10 year "quite" period from the date the quit-claim deed is recorded, in which you cannot re-sell the property with a warranty deed (but you can resell with another quit-claim deed).

This particular town also does not sell tax liens to the public. They try their best to work with the owner, but if that fails, then they only ever take ownership of the property to sell at public auction.

This doesn't exactly answer you questions, but hopefully it provides a bit of insight.

I own a single family in Laconia. It has a clothes washer and dishwasher. I typically pay between $200 - $250 a quarter.

If you can go residential, you can get lower rates that way. I've had great luck cash-out refinancing several investment properties with Granite State Credit Union. Though, because it's backed by Fannie, you will have to pay the Loan Level Price Adjustments (essentially points) - but you would get a much lower fixed rate for up to 30 years.

@Bill Exeter, how about the timelines? Is it doable in that tight of a timeline?

Hey all,

I'm doing my first 1031 exchange. I'm selling a piece of land I've held for the last 13 years, and putting it towards a SFH. I was not originally intending to do an exchange, but a FSBO showed up on my radar earlier this week, and I ended up putting in a offer that was accepted last night.

My timeline is tight. I'm closing on the land sale on Feb 5th, (been under contract for a while). And the FSBO needs to close by the 16th, because they are being foreclosed on by the 18th.

I need a Qualified Intermediary ASAP. I've read that it doesn't have to be somebody local because it's federal regulations. However, given the extremely tight timelines, would I be smarter to use a local intermediary?

If anybody has recommendations for a good Qualified Intermediary in New Hampshire, I'd appreciate it.

Also, if some of the BP 1031 experts (eg: @Dave Foster or @Bill Exter) could chime in, I would be grateful.

Hi @Nick Yego,

I have not tried to custom build a home to use as an AirBnB, but I can say that it will be a little more difficult in today's market. Land is selling for the first time in a decade much faster than usual, and much like house sales the prices are going up for land. Compound that with the extraordinary prices of building materials, plus  a shortage of contractors, and you get an environment that is much more tricky to produce a good deal. I'm not trying to dissuade you, it certainly is possible - especially if you can provide any sweat equity on the build.

If you need an agent, I know one who is skilled in land deals - private message me and I'll send you their contact info.

Let me know if you need any more details, I'd be happy to assist. And good luck in your endeavor. 

-Matt

I live in a 40 year old house and we keep it exceptionally clean. Yet, mice seem to find their way in every year. I am on a contract with JP Pest. They come and inspect for any point of entry, and report it ... and if possible they will stuff it with steel wool (the thick, sharp stuff that mice can't chew through). They also setup multiple bait stations, and check/refill them quarterly.

That being said, I have a handful of SFR as well. For all of my tenants who have reported mice, I put their units on a contract with JP Pest (which I pay). All of my tenants keep relatively clean homes. However, New Hampshire is cold, and mice will find any warm place they can when it gets cold, regardless of how clean it is. IMO, for mice, the landlord should cover the expense.

For other "pest" problems, (eg: bed bugs, **** roaches, etc), those should be strictly be up to the tenant, as those are not generally caused by the structure, but usually are a direct result of the tenants living conditions.

@Shane Cloutier, I don't know if you get special lower rates for electricity up in that part of NH ... but NH is not known for low electric rates. In fact, the national average is 10.54 cents/kWh, and NH's average is 17.15 cents/kWh - the 6th highest in the country (source: https://www.eia.gov/electricit/state/)

I wouldn't attempt to heat a whole house using just radiant floor heat, unless you have really good insulation. As others have pointed out, Radiant Floor heat is really slow to heat a space. If the house is old or drafty, radiant floor would struggle to keep it warm. If the house is really tight, and has excellent insulation and modern windows, then you could probably comfortably heat the home with radiant floors.

That being said, if you do install radiant electric heat, make sure to install a spare thermostat lead. Those are the most common thing to go, and when they do, it is an expensive fix to put in a new one!

Lastly, I have a couple of SFR's with electric heat - I have no problem renting them out. Eversource offers a reduced rate for electric heat (it's called Heat Smart). It's not well publicized. You have to put all of your electric heat on a separate meter and panel (this can be expensive), but it can save lots of money for your renters. You also have to have a "backup" heat source (think wood/pellet/gas stove), because in exchange for the lower rate Eversource reserves the right to shutoff the Electric Heat for up to 4 hours a day (no more than 2 days in a row). In practice I have never had this happen during the winter, but I've seen it happen on average once a year during the hottest days of summer (when the heats not needed, so no biggie). I do not know if NH Electric Co-op (or other providers) offer similar programs.

Hi @Valerie Russell and welcome to Bigger Pockets. I've never heard of a Land Inspector before? I'd suggest you find a good RE agent who knows the ins and outs of buying unimproved land (DM me if you need a reference). It's probably a good idea to walk the land with a reputable builder too. Some things to consider when buying land:

1. Read the Deed! pay attention to easements, building restrictions, rights of way, etc
   
2. Is there ledge? If ledge is near the surface, construction will be more expensive (blasting or pecking cellar hole, leach field, underground utilities, etc)
3. Ask neighbors about their well: Hard water, Radon in Water, Depth, flow, etc.
4. The further from the road, the more expensive it is to bring in utilities (Electric/Phone/Cable).
5. Watch out for wetlands! Check with the towns Building Inspector, ask for all the records on the property to ensure it is a build-able lot!
6. Walk the land. Pay attention to slope - steep slopes are harder and more expensive to build on - but they may provide views.

Good luck!

Hey @Mike Testa

I've tried to ask this type of question many times, and never gotten a response that resonated with me. Here is how I manage things for my 5 units:

1. 1) I use an online bank (Capital One 360, but I also like Ally).
2. 2) I have a single checking account.
3. 3) Each property has it's own high interest savings account. (escrows get there own account, and are not commingled)
4. 4) I setup automated transfers out of individual savings accounts and into either the checking account, or another bank, for fixed recurring expenses (eg: insurance, mortgage payment, HOA, etc).
5. 5) For non-fixed payments (taxes, utilities, repairs, etc), I simply transfer from the savings to the checking and make the payment.
6. 6) I collect all my rent through cozy, which auto-deposits into the checking account. I manually transfer the rental income to each properties savings account when it arrives (this is fun :) )
7. 7) I also have automated transfers every month that move the "Free Cash Flow" for each property into a separate high-interest savings account. This money is what I consider my profit. I typically let it build up to use for my next investment ... but someday, when I retire, it will be my income.
8. 8) Each savings account's register acts as a history of money in/out for that property.
9. 9) For each Property, I have a spreadsheet, which tracks the income and expenses (a new tab for each year), along with other property details (purchase price, rehab expenses, mortgage balance, cash flow, etc).
10. 10) I've recently started using Stessa to track income and expenses as well. It connects to my bank accounts the same way Mint or Personal Capital does, and downloads all the transactions. I'm able to link specific accounts to specific properties, and it has some auto-categorization. I'm still evaluating whether or not I like this, so I have no recommendation at this point.

I don't separately track money that is "earmarked" for capex or vacancies. Instead that money just sit's in the savings account for each property. I treat that money as a bucket to cover any expenses the property has. Assuming I have set my capex % and vacancy % right, and I know all of my expenses, I should always have the money to cover whatever comes up. So far, so Good.