All Forum Posts by: Stephen Polizzi

In my state (NH), I'm pretty sure you have to be an agent/salesperson for 1 year full-time or 2000 hours part-time to move up to a broker.

Partnership is more than a payment arrangement.  @Nathan Smith If you're on the same page and see a future building a business with your contractor as a partner, there's a lot of added value there.  If this is a one-time thing, then unless you're short on cash to see the project through, you probably don't need to give up that much.  

The short answer to your question is that 50/50 or 60/40 are both common (in either direction). 

Maybe work up an estimate on what it would cost to pay the contractor traditionally. Adjust your percentage to beat that (accounting for risk and delayed payment).  If you just meet it or it's less, the contractor will probably feel cheated and your project will suffer.  That's just human nature.

Thanks, Ann, I'll check that out. Good points on landlord laws and income tax.  

@Ann Bellamy Laconia is definitely on my shortlist for rentals.  These are the areas I'm looking at trying to determine their value in chasing - in no particular order:

1. Plymouth/Ashland/Campton/Rumney

2. Meredith/Laconia

3. Bristol

4. Tilton/Franklin (I've heard bad things)

5. Concord (and surrounding towns (Loudon, Pembroke, Bow, etc)

6. New London (doubtful due to price)

7. Newport

8. Claremont

9. Lebanon/W Lebanon/Hanover/White River Junction

I expect in a few years I'll know the exact responses to these choices, but I figure there must be some data points that will help me narrow things down in the meantime such as school ratings, real estate tax vs potential rent, crime, multifamily inventory, population size, other economic factors.  

Even some book recommendations that talk about how to judge an area for rental investment potential would be good.

...and always at the back of mind is the lingering doubt that I should be investing in NH rentals at all given the amount of rural areas and high real estate taxes.

@Thomas Gagnon Beautiful building.  Can you elaborate more on this:

Is there an auction coming up? Did you purchase that 2 family on tax deed and if so when?

Are there any rule-of-thumb metrics for what makes a viable strategy such as population size, distance from population center, or economic numbers? I'm trying to determine which areas to target that are:

1. More towards the center of the state (where I'm based) than the south 

2. Less competitive/overpriced than the big 4: Concord, Manchester, Nashua, and Portsmouth.

I'm willing to work a little harder and be a little more creative to carve out a niche. I'm not willing to pay top dollar for a building built 250 years ago that barely breaks even on conservative projections. 

Couple other questions:

Nobody mentioned school districts yet. I was under the impression that Newport and Claremont don't rate highly...how big a factor is that?

I've heard that building a portfolio of rental SFRs in NH is very difficult to do because of high property taxes...is looking at SFRs for BRRRR not worthwhile?

I'm trying to figure out that fine line between "stay away from this area" and "make sure you adjust your numbers for this area".  Surely all of the good investing in NH rentals can't only be in Concord, Manchester, Nashua, and Portsmouth.

I'm interested in utilizing the BRRRR strategy in these markets. What are the downsides, and are they enough that they should dissuade me from trying?

"PS, one last example. There is a profound difference between Keene, and say Claremont or Newport, even if they seem similar on paper."

I read that in this post: https://www.biggerpockets.com/forums/86/topics/166...

I do understand that these are lower income "blue collar" type towns, but are they bad investments? 

Anyone have any update on this? That document from the USPS is dated 2012.

@Hussein Madkour In NH all other liens are wiped out by the tax deed.  The lienholder needed to address it prior to that point (in NH tax deeds are done after 3 years of tax liens).