North Shore VS Merrimack Valley VS Southern NH

[Curtis Baker]

We are in the market for a two or three family property that we will owner occupy for at least a year or two until we are ready for another. Rent is higher the closer to Boston you go but also home prices are too. We will have approximately $50k cash available when we are planning on buying which, in an area like Boston wouldn’t allow for much. Even in an area like Lynn (North Shore) the margin between gross monthly income and all expenses based on an $800k property would net us approx $-2500/mo. Lawrence, Haverhill, Nashua, and Manchester markets are tempting because the property values are lower.The margins between estimated monthly expenses and gross monthly income from the property are much smaller and could cash flow after minor updates and repairs.  Is it worth waiting until we have more cash and purchase closer to Boston or do we move our endeavors north to get into real estate and scale up from there?

[Erik Taber]

Hi Curtis. My business partner and I are currently planning to purchase in the the Merrimack Valley/Southern NH area in the coming months. I've analyzed those markets for some time, and would be happy to share what I'm seeing. Feel free to connect if you want to chat. 

[Lien Vuong]

I think $50k is too shy for Boston proper zip codes unless you're OK in a smaller multi family. If you're focused on the larger 2-4 unit buildings heading more North Shore, Merrimack Valley, and/or Southern NH is going to yield much better value. I see MV has the right middle ground here where there's less eyes on it and gives you direct highway access to the city whenever you need it. If you can get into some properties in Salem or Nashua that might make sense too but the tax bill might eat a good portion of your profits. 

Unless you're able to save to double your downpayment to $100k plus it might make sense just to engage in these markets you outlined and see what's available that fits your criteria. The right deal will come in time. 

[Jessica Stevenson]

@Curtis Baker like most other places, southern nh has seen significant appreciation in the last few years, with not much sign of slowing down. Buyers and investors have been flocking to this area for all the reasons mentioned in previous comments, PLUS the fact that our landlord/tenant laws are much easier to deal with than in MA. Go to some networking events in both areas, get on some wholesaler buyers lists, and have an agent set you up with an automated search on the MLS so you can start to follow trends both on and off market. I agree with @Lien Vuong in that $50k is too shy for Boston

[Daniel McDonald]

I am on my second house hack in Beverly Ma (North Shore) and both cost about 75k all said in done (closing, dp, reno costs, etc.). So I do think it would be a little tight. However, doesn't mean it's impossible. I may be biased, but I really like the north shore area because the appreciation is wild. You're still close enough to Boston but not paying Boston prices. For house hacking I do think it's an area that makes total sense. Always happy to chat through my experiences!