Hello BP, I am out of state investor considering a second/STR home in Vermont/Maine/ New Hampshire/Tennessee. I have done a lot of research on these places, but can't seem to decide. Can you share what are the best cities in these states, so I can compare with my notes. In advance, Thanks
I will opine on Maine and NH only, as I live in Maine but have spent extensive time in NH as well. It somewhat depends on what specifically you are looking for. In this part of the country, the first thing to come to mind to me for the STR opportunity is the various beach communities that have long histories of STR business. This also helps shield you from regulatory risk as these communities have engrained STRs into their local economy. Some areas to take a look at on this front: Old Orchard Beach ME, Wells Beach ME, Kennebunk/Kennebunkport ME, York Beach ME, Hampton NH, Seabrook NH. I'm sure there are more I am forgetting, but these are the areas I am familiar with.
Hi @Mari Puga ! Without knowing your investment goals, it is hard to pinpoint the best areas in these states for you personally to invest in. However, I can let you know a few popular areas in these states where previous investors I've worked with have considered. In Vermont-- ski areas like Ludlow, Stowe, and Waterbury, Maine--Bar Harbor, New Hampshire--North Conway, and in Tennessee--Gatlinburg, Pigeon Forge, and Nashville (beware of the STR restrictions in Nashville). There are a few important things to remember when researching where to invest in an STR: understand the STR regulations there, hire an agent who understands the STR market, look into your competition, and run the numbers. Good luck!
HI @Melissa Wesling. Thank you so much for this info. Very helpful. Those are some of the areas that I looked at.
Hi Mari, I would suggest East Tennessee. Gatlinburg, Pigeon Forge, Sevierville, and the surrounding areas are a GREAT option for STR. It is now the number one tourist area in the United States. We are experiencing record high occupancy rates and returns. The area also has a number of built in insulators that will help maintain values if/when we experience a correction period. Best of luck with your search!
Hi @Cody Frasure , thank you so much, super valuable information.
Kennebunkport is a great area for STR. Demand is high but the cost of entry is fairly high as well and the new STR regs are sure to have an impact on the future of STR's in the area. Be sure you are including regs/ordinance research in your due diligence if you have not done so already. Investing in a property for STR only to find the cap for licenses has been reached will have an impact on holding costs for sure. This is not to say you should not invest in that area, just have a back up plan e.g. winter rental or long term rentals while you wait for a license to become available. No new licenses will be issued in 2022 and a n STR license will not convey with a sale. However, if you purchase a property that already has a license, that license will remain valid for the remainder of the year. Here's a link for the Kennebunkport ordinance for ease of reference. https://www.kennebunkportme.go...
Welcome to the forum and congratulations on getting started.
With Atlanta continuing its expansion and growth tertiary markets in Tennessee have also benefited. Chattanooga, TN has seen QOZ investment, new development and growth. This could be a potential market to look at that can still provide good opportunities.
Best of luck on your journey and congrats again on starting out.
The Appalachian mountains would be a good investment as the South's population grows. It depends on your tastes, etc. whether East TN is the right area. Gatlinburg is kind of very touristy (cheesy) compared to Highlands, NC or Asheville, NC which are quaint. I know folks who have done very well in both kinds. I'd suggest matching your style with your investment destination.
@Coelan Houle. I am looking for a Single Family and so far Old Orchard Beach is appealing. I will take a look into the other areas you mentioned. Thanks so much for your input.
@Jody Moscrip yes, that is one of my fears the regs on STR. It looks like some areas are starting to enforce them. Thanks for the link to Kennebunkport.
@Rick Baggenstoss Interesting that you mentioned matching my style to the investment because I thought I have focused a lot on that, but now I am trying to keep the attention to the business opportunity. LOL. I need to find the balance.
I haven't considered TN, but that state keeps popping up.thanks for the tip.
@Cameron Braig thanks Cameron. Yes, the first one is the most difficult. TN keeps popping up so I will take a look at these areas. Do you suggest
I'm in the middle Tennessee market. Nashville has cracked down very hard on STR, so you would need to talk to more specific investors there about possibilities. Without being local, not sure if that's the best place. City regulations are changing very quickly.
If you are thinking Chattanooga - talk to several PMs there. I know the houses can drastically change from street to street. My brother invested there and ended up pulling out his money because some of it was too sketchy.
The East Tennessee market it sounds like it might be a good place for your goals. Gatlinburg and the surrounding areas. I know prices have risen their drastically(haven't they everywhere!), but I'm sure there's some deals out there.
I'd be careful with North Conway. The locals are fighting back pretty hard on STR and seem to be winning handedly. Unsafe STR investment now