Southern New Hampshire First Time Investor

Starting Out
5yFollow

Southern New Hampshire First Time Investor

Anthony DalPra
Homeowner · Southern New Hampshire · Member since 2021 · 11 posts · 2 votes

Hi everyone,

I am looking for some advice on my first investment property.  I live in Southern New Hampshire and am actively looking with my agent.  I have put in multiple bids on condo/ townhome style homes in the area (housing market here has gone crazy).  I have about 50k I am willing to put into a deal, I can do more if the right deal were to present itself.  I would ideally like to purchase something that can cash flow me the most money quickly.  I am self employed and do well at my job but would like to be home more with my family in the future.  Anyone have advice on if I should be getting into vacation rentals, multi family, commercial, or single family homes to get started?   Looking for advice from people who are familiar with my market/ are or were in my same situation.  I am not opposed to doing out of market deals if I need to, but would prefer to stay local if I can.  I want to make the right first investment purchase that will allow me accelerate my real estate business as fast as possible.

2Reply
15 views

Most Popular Reply

Michael Ketchen
Rental Property Investor · NH · Member since 2016 · 74 posts · 35 votes
5y

Hi Anthony,

Congratulations on getting in the game! I have about 130 units I own and operate across southern NH and I have some STR in Maine and Montana, so I am familiar with the long distance investing as well. My advice would be start with the end in mind. From your post it appears you are valuing time freedom and some more security outside of your 9-5. If that is the case, I would target more stabilized properties, there are of course pros and cons to this type of assest and over time your investing philosophy can change. While "deals" are hard to find right now, it is not impossible. Good luck on the search and if I can be of any help, don't hesitate to reach out.

2Reply
See this reply in the discussion

22 Replies

Jump to latestLatest
  • Aaron Montague
    Rental Property Investor · Brookline, MA · Member since 2013 · 1k+ posts · 777 votes
    5y

    @Anthony DalPra - Welcome to BP!!

    It sounds like you've found some markets you like. Now it is time to start evaluating deals and bringing those numbers to folks here on BP that have been doing this a while.  

    Post some of the deals you have found and let the community give feedback.

    0Reply
  • Sean DelisleBusiness Member
    Real Estate Agent · Londonderry, NH · Member since 2021 · 102 posts · 50 votes
    5y

    Hi Anthony,

    There are very specific items sellers are looking for in a contract.  Just make sure you're addressing them and you'll get an offer accepted.  It's definitely taking multiple offers to get contracts accepted in New Hampshire.  

    I have owned single family, commercial and short term rentals. I currently own a STR in Maine. I have to say, of all of my investments, I like the STR the best, but they are a little more hands on. I self manage, but love that process and the guest experience side.
    Figure out your direction and then run with it!  You can always sell if you don't like the direction.  

    I work with an investor that buys condos in Merrimack.  He pays cash, fixes them up and charges a premium rent.  He has great little system and they do very well.

    I hope you find a deal soon!  Best of luck!

    Sean

    [email protected]978-233-1756
    Elevate Property Group|BHHS Verani5130 Reviews
    WebsiteView Page
    1Reply
  • Michael Ketchen
    Rental Property Investor · NH · Member since 2016 · 74 posts · 35 votes
    5y

    Hi Anthony,

    Congratulations on getting in the game! I have about 130 units I own and operate across southern NH and I have some STR in Maine and Montana, so I am familiar with the long distance investing as well. My advice would be start with the end in mind. From your post it appears you are valuing time freedom and some more security outside of your 9-5. If that is the case, I would target more stabilized properties, there are of course pros and cons to this type of assest and over time your investing philosophy can change. While "deals" are hard to find right now, it is not impossible. Good luck on the search and if I can be of any help, don't hesitate to reach out.

    2Reply
  • Alecia LovelessPro Member
    Member since 2019 · 3k+ posts · 2k+ votes
    5y

    @Anthony DalPra I think STR are providing the best cash flow right now. They are essentially giving the best bang for your buck. There was a lovely STR on the market locally that was cash flowing around $18,000 after mortgage and bills in my market. This was with property management.

    Personally in my Northern New Hampshire market I'm buying long term multi family rentals as buy and holds and I'm getting good solid deals on well maintained properties but the ones I'm having to finance are only mediocre deals right now. I'm averaging about $125 a door after the mortgage payment and my CapEx. I expect my total cash flow will be about $5,000 on each. This is with me managing the properties.

    Both examples are annual returns.

    So I think it depends on what market you want to get into and if you’re going to do self management or hire it out. You need to define your needs and pursue those properties specifically.

    0Reply
  • Anthony DalPra
    OP
    Homeowner · Southern New Hampshire · Member since 2021 · 11 posts · 2 votes
    5y
    Originally posted by @Sean Delisle:

    Hi Anthony,

    There are very specific items sellers are looking for in a contract.  Just make sure you're addressing them and you'll get an offer accepted.  It's definitely taking multiple offers to get contracts accepted in New Hampshire.  

    I have owned single family, commercial and short term rentals. I currently own a STR in Maine. I have to say, of all of my investments, I like the STR the best, but they are a little more hands on. I self manage, but love that process and the guest experience side.
    Figure out your direction and then run with it!  You can always sell if you don't like the direction.  

    I work with an investor that buys condos in Merrimack.  He pays cash, fixes them up and charges a premium rent.  He has great little system and they do very well.

    I hope you find a deal soon!  Best of luck!

    Sean

     Hi Sean,

    Thank you for the reply. I sold my house in Nashua last year and moved to a house in Londonderry so I know how hard it is to get an offer accepted in this market. I like the idea of getting into STR. Have you found a better market in NH for them such as lakes region, or on the coast? How do you make it work living in NH and and running a STR in Maine?

    0Reply
  • Anthony DalPra
    OP
    Homeowner · Southern New Hampshire · Member since 2021 · 11 posts · 2 votes
    5y
    Originally posted by @Aaron Montague:

    @Anthony DalPra - Welcome to BP!!

    It sounds like you've found some markets you like. Now it is time to start evaluating deals and bringing those numbers to folks here on BP that have been doing this a while.  

    Post some of the deals you have found and let the community give feedback.

    HI Aaron,

    Thank you for your reply! I will give you an example of a townhome in Manchester NH I just put an offer in. It was listed for $170,000, really didn't need any work besides minor cosmetic things I put an offer in for $215,000 with a 20% down conventional, waiving inspections and didn't get it. It would have cash flowed between 4-$500 per month. My total out of pocket expense would've been around $52,000. I could continue to look for deals like that, or I could look for STR where I can purchase a home for say $400,000 and put a 10% down payment vacation home loan. I am not sure if you or anyone else on this thread have any input on this?

    0Reply
  • Anthony DalPra
    OP
    Homeowner · Southern New Hampshire · Member since 2021 · 11 posts · 2 votes
    5y
    Originally posted by @Michael Ketchen:

    Hi Anthony,

    Congratulations on getting in the game! I have about 130 units I own and operate across southern NH and I have some STR in Maine and Montana, so I am familiar with the long distance investing as well. My advice would be start with the end in mind. From your post it appears you are valuing time freedom and some more security outside of your 9-5. If that is the case, I would target more stabilized properties, there are of course pros and cons to this type of assest and over time your investing philosophy can change. While "deals" are hard to find right now, it is not impossible. Good luck on the search and if I can be of any help, don't hesitate to reach out.

    Michael,

    That is quite impressive 130 units!  I would love to get to that point.  Did you purchase these properties with traditional lending?  Your units in southern NH are they apartment buildings, condos, or single family homes?  Thank you for taking the time to reach out to me, I am sure you are busy with that many units.  

    0Reply
  • Ryan M.
    Investor · Medford, MA · Member since 2017 · 56 posts · 27 votes
    5y

    Why not house hack on a 3 or 4 plex, and FHA it if need be? Save your cash.


    If you currently reside in a town home/condo/SFH, rent it out and now you have multiple units.

    0Reply
  • Anthony DalPra
    OP
    Homeowner · Southern New Hampshire · Member since 2021 · 11 posts · 2 votes
    5y
    Originally posted by @Ryan M.:

    Why not house hack on a 3 or 4 plex, and FHA it if need be? Save your cash.


    If you currently reside in a town home/condo/SFH, rent it out and now you have multiple units.

     Hi Ryan,

    I like that idea however I have 2 large dogs, a almost one year old, and a wife.  So this would not be the best option for me.  I do wish that I had done this with my first home, but I was not in that mindset at that point in my life.

    0Reply
  • Michael Ketchen
    Rental Property Investor · NH · Member since 2016 · 74 posts · 35 votes
    5y

    Hi Andy,

    a little bit of everything on the fiance side, but mostly creative finance. We primally used the BRRRR method and our typical Building size is 12-30 units. The airbnbs are all single family for larger groups and same kind of financing.

    0Reply
  • Aaron Montague
    Rental Property Investor · Brookline, MA · Member since 2013 · 1k+ posts · 777 votes
    5y

     I always worry when I see the term "cash flowed" from someone new to BP. When I use that term I mean it cashed flowed after I accounted for each of these items on a monthly basis:

    Monthly Mortgage payment
    Mortgage Insurance
    Taxes
    Sewer and Water
    Trash
    Heat/Utilities
    HOA/Legal
    Cap Ex and Ops
    Insurance
    Mgmt Fee
    Vacancy

    Did you put a number to each of these? $0.00 is fine, as long as it the correct amount.

    0Reply
  • Sean DelisleBusiness Member
    Real Estate Agent · Londonderry, NH · Member since 2021 · 102 posts · 50 votes
    5y

    Anthony,

    My STR is about 1hr 10min away. To me that's perfect. I think people assume tons of things go wrong, but I've had really good luck with my guests and my home. My home is really well maintained, I don't skimp on anything. I do have a person up there that would look at the home if needed, but for now, we self manage and check the home weekly before the cleaner arrives. It's all about getting good people. Our cleaner is great, but we pay her well and have also referred a ton of business to her.

    I think anything within an hour works great.  The downside of Maine is the length of the season.  It's kinda short and I'm not interested in renting monthly after the season.  That's when people settle in and the home starts to deteriorate.  

    I'm happy to chat anytime!  

    [email protected]978-233-1756
    Elevate Property Group|BHHS Verani5130 Reviews
    WebsiteView Page
    1Reply
  • Dan Thomas
    Rental Property Investor · Bow, NH · Member since 2016 · 216 posts · 185 votes
    5y

    @Anthony DalPra

    Hi Anthony,

    I have been struggling to get any offers here in NH accepted. I started buying out of state properties through because I can't seem to find any financed properties here in NH that make sense. I am looking to get a NH or Maine STR but haven't had any offers accepted yet as this market is nuts and it seems like out of state cash buyers are willing to pay WAY over asking price which makes a financed offer a non starter. Good luck to you!

    Dan

    0Reply
  • Anthony DalPra
    OP
    Homeowner · Southern New Hampshire · Member since 2021 · 11 posts · 2 votes
    5y
    Originally posted by @Sean Delisle:

    Anthony,

    My STR is about 1hr 10min away. To me that's perfect. I think people assume tons of things go wrong, but I've had really good luck with my guests and my home. My home is really well maintained, I don't skimp on anything. I do have a person up there that would look at the home if needed, but for now, we self manage and check the home weekly before the cleaner arrives. It's all about getting good people. Our cleaner is great, but we pay her well and have also referred a ton of business to her.

    I think anything within an hour works great.  The downside of Maine is the length of the season.  It's kinda short and I'm not interested in renting monthly after the season.  That's when people settle in and the home starts to deteriorate.  

    I'm happy to chat anytime!  

     Sean,

    I was wondering how that worked out for you as far as checking in on the property.  So, you are driving up to make sure the house is ready every time between renters?  Do you only rent your house for one week at a time?  I love Maine but I do worry about the length of season as well.  Do you winterize your house at the end of season?

    0Reply
  • Anthony DalPra
    OP
    Homeowner · Southern New Hampshire · Member since 2021 · 11 posts · 2 votes
    5y
    Originally posted by @Dan Thomas:

    @Anthony DalPra

    Hi Anthony,

    I have been struggling to get any offers here in NH accepted. I started buying out of state properties through because I can't seem to find any financed properties here in NH that make sense. I am looking to get a NH or Maine STR but haven't had any offers accepted yet as this market is nuts and it seems like out of state cash buyers are willing to pay WAY over asking price which makes a financed offer a non starter. Good luck to you!

    Hi Dan,

    I thought the market was tough when I bought my house in Londonderry last year, but homes in the past 6 months or maybe even a bit longer have sky rocketed.  If you don't mind me asking where have you started to buy homes out of state?  How does that work for you?  I am very interested in hearing about that as I think that might be the direction I am heading to next.



    0Reply
  • Sean DelisleBusiness Member
    Real Estate Agent · Londonderry, NH · Member since 2021 · 102 posts · 50 votes
    5y

    You can have an entirely passive STR, my buddy bought on Hilton Head Island last year and is killing it with his STR. He pays a property manager, but he handles the bookings. There are frustrations, but we go down QTRLY to work on it. Or at least that's what we tell our wives, jk. We actually do check on it and spruce things up or make repairs. Any urgent repairs are managed by the property manager.

    I'm at about $7,000 a week for peak weeks in July & August.  I've had at least weekend renters since mid-May that will continue into Oct this year.  Last year we did have a Dec. guest for 3 weeks which was a complete bonus!  The home is going to do very well this year.

    The way I look at it is there is higher reward on STR, but they do require some work. The direct booking software I use is also a channel manager, so it updates both VRBO & AirBnB. So my calendar is always up to date. It's not a ton of work to manage booking requests.

    I'm self employed as well, so it's not a big deal to go up on Saturdays (or any day), deliver the laundry, check the house, spend the day with my wife & kids and then check back in after it's cleaned.  We don't winterize, that's when I do any maintenance it needs or we spend a night etc....

    I have cameras, temperature notifications, leak detectors that will automatically shut the main off etc....and the mini splits are back up heat.  I feel pretty good about the house being safe in the winter.  

    I work with a cash investor that purchases townhouse condo's, fixes them up and charges a premium rent....he's getting $2300 a month for 2 bedroom, 1.5 bath condos.  He's slowed down a little because the prices are getting out of control, but at the same time he has purchased at many price points in the development, so like a mutual fund it averages out.  His appreciation has obviously been unreal this past year.

    Keep looking, there's deals out there.  Most just decide and start analyzing deals.

    [email protected]978-233-1756
    Elevate Property Group|BHHS Verani5130 Reviews
    WebsiteView Page
    0Reply
  • Anthony DalPra
    OP
    Homeowner · Southern New Hampshire · Member since 2021 · 11 posts · 2 votes
    5y
    Originally posted by @Sean Delisle:

    You can have an entirely passive STR, my buddy bought on Hilton Head Island last year and is killing it with his STR. He pays a property manager, but he handles the bookings. There are frustrations, but we go down QTRLY to work on it. Or at least that's what we tell our wives, jk. We actually do check on it and spruce things up or make repairs. Any urgent repairs are managed by the property manager.

    I'm at about $7,000 a week for peak weeks in July & August.  I've had at least weekend renters since mid-May that will continue into Oct this year.  Last year we did have a Dec. guest for 3 weeks which was a complete bonus!  The home is going to do very well this year.

    The way I look at it is there is higher reward on STR, but they do require some work. The direct booking software I use is also a channel manager, so it updates both VRBO & AirBnB. So my calendar is always up to date. It's not a ton of work to manage booking requests.

    I'm self employed as well, so it's not a big deal to go up on Saturdays (or any day), deliver the laundry, check the house, spend the day with my wife & kids and then check back in after it's cleaned.  We don't winterize, that's when I do any maintenance it needs or we spend a night etc....

    I have cameras, temperature notifications, leak detectors that will automatically shut the main off etc....and the mini splits are back up heat.  I feel pretty good about the house being safe in the winter.  

    I work with a cash investor that purchases townhouse condo's, fixes them up and charges a premium rent....he's getting $2300 a month for 2 bedroom, 1.5 bath condos.  He's slowed down a little because the prices are getting out of control, but at the same time he has purchased at many price points in the development, so like a mutual fund it averages out.  His appreciation has obviously been unreal this past year.

    Keep looking, there's deals out there.  Most just decide and start analyzing deals.

    Thank you for the great response.  I like the idea of short term rental for now.  I am going to do some research to some areas that are about an hour or so away from my house.  I like the idea your friend had as well with Hilton Head Island.  I didn't realize how well you could do in Maine during peak season.  If you do not mind me asking do you have a 5 plus bedroom home on the water?  Or how are you getting 7k per week in peak season?

    0Reply
  • Sean DelisleBusiness Member
    Real Estate Agent · Londonderry, NH · Member since 2021 · 102 posts · 50 votes
    5y

    I sent you a connection request.  I'm not sure I can give you the website to my home here, so I'll send it along as a message.  The home is not on the water but ocean views.  Sleeps 12 and we provide everything, so totally turn key for guests.  It's a newer home with nice finishes.  8 min to long sands, short sands and the lighthouse, so great location.

    [email protected]978-233-1756
    Elevate Property Group|BHHS Verani5130 Reviews
    WebsiteView Page
    0Reply
  • Anthony DalPra
    OP
    Homeowner · Southern New Hampshire · Member since 2021 · 11 posts · 2 votes
    5y
    Originally posted by @Sean Delisle:

    I sent you a connection request.  I'm not sure I can give you the website to my home here, so I'll send it along as a message.  The home is not on the water but ocean views.  Sleeps 12 and we provide everything, so totally turn key for guests.  It's a newer home with nice finishes.  8 min to long sands, short sands and the lighthouse, so great location.

    That sounds amazing! I will be looking in my inbox!

    0Reply
  • Kevin QuatBusiness Member
    Real Estate Broker · Hilton Head Island, SC · Member since 2020 · 40 posts · 16 votes
    5y

    @Anthony DalPra have you considered financing with the $50k? I know of a number of long term rentals that cash flow.

    [email protected]843-290-6463
    AIM Real Estate Management, Inc.4.2155 Reviews
    WebsiteView Page
    0Reply
  • Anthony DalPra
    OP
    Homeowner · Southern New Hampshire · Member since 2021 · 11 posts · 2 votes
    5y
    Originally posted by @Kevin Quat:

    @Anthony DalPra have you considered financing with the $50k? I know of a number of long term rentals that cash flow.

     Hi Kevin,

    I would be open to some ideas if you have any.  I am open to short term vacation rentals in Hilton head as well as long term if I have the right boots on the ground.  

    0Reply
  • Eivind Eikrem
    Member since 2021 · 1 post · 0 votes
    5y

    @Anthony DalPra

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free