First rental property in NH

7 Replies

Hi BP community! Brand new here, been searching for my first property. I’ve been looking at duplexes (or more) to owner occupy. I was pre-approved for 350k conventional or FHA. I’ve been trying to find deals that will benefit me 3-4 years down the road when I move out and rent both units, here’s my question: is there an equivalent to the 1% rule when owner occupying? I’m looking at this duplex with MLS list price 330k which I think is way too much, it was listed at 249k a couple years ago. 2BR 2B units, Rents about 1800. I’m stuck finding a simple equation for owner occupying, what did you do for your first duplex if you lived in one half first? How did you know it was a good deal? sorry for the newbie question!


When you're going to be doing an owner occupied property. Your goal is to have the tenant pay for your mortgage so that you will live for free.

Is that the case with this property? 

James, kudos to getting pre-approved and taking some concrete steps towards making your first deal. You mentioned you’re looking for a duplex that meets the 1% rule while you’re owner occupying - this is going to be pretty tough, there’s not too many deals out there that would hit this metric, as it would imply that the property nearly hits the 2% rule when you move out and rent your unit (which is hard to achieve in NH). The only way to really achieve this is to look for 3-4 unit buildings, in which case it’s possible. What areas of NH are you looking in? That greatly dictates the kind of deals you’re going to find... the numbers you find on NH/MA border properties are going to be significantly different than ones in say Nashua or Manchester

Hi Axel, I think the goal for my first property would be to live for free for a year or two while gaining capital, and make sure it meets the 1%-2% rule once I move out, therefor calculate as if I wasn’t living in it at all? I’m trying to avoid Nashua but have viewed some in Manchester. Target area is definitely on southern Nh border.

@James Lapierre , If you want to consider Milford, NH, a very different market from Nashua, send me a private message and I'll send you some numbers.  Milford is a nice little town.

@James Lapierre The Manchester market will certainly get you those numbers, and you can find duplexes in solid areas that will get you what you need. If you wanted to be farther south (Windham, Salem, Atkinson, other smaller border towns) you’re going to have find a good deal for a duplex to hit the 1.5%+ rule. PM me and I can send you some properties that will fit that criteria!

@James Lapierre , what did you settle on?  I'm curious because these are areas I'm also looking to invest in (though not as owner-occupied).  Thanks for any info on your luck!

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