First Rental Property in NH - is it worth it?

Question

Hey!

I’m a holder investor based in Boston, however I was introduced with an opportunity to purchase a “vacation”/rental property on a lakefront in NH (one of the smaller lakes around lake Winnipesaukee).

it’s zoned as R/C, 2BED/1BATH at the 350k range. What y’all think? Is it worth it?

none of my ROI calculators for investment properties seem to be applied because the "slow season" which comes with this type of property (I was thinking to use it as an AirB&B).

sorry for the long read, looking forward to hearing some outside perspective!sheh

Kyle Lacasse · Answer

@Eden Mendel it will all depend on the area/lake. Obviously the big Lake will be more sought after, but look at location. Is it also near ski mountains, snow mobile trails, other outdoor activities for the winter months? I manage rentals in the greater lakes region and there is definitely a drop in September, but it bounces back November into the new year. Summer season is booked without even trying, and setting sometimes ridiculous rates.

Kyle Lacasse · Answer

@Eden Mendel depends on the town it’s located in. Gunstock and Ragged mountain ski areas are in my turf. They help with winter rents. There are also events on the big lake in the winter (pond hockey, fishing derby, etc) that also draw people.

Alecia Loveless · Answer

@Eden Mendel I’m from further north in New Hampshire than the lakes region and you can easily get at least $800-$900 for 2/1 properties seasonally monthly in the winter no problem. I’d find it hard to believe if there’s anything nearby restaurants, snow mobile trails, ice fishing, restaurants you wouldn’t be able to get weekend rentals for $300 from the Boston/Portsmouth/Southern New Hampshire areas for two to three nights and just find a cleaning service and throw it up on AirBnB with a 2-3 night option and a monthly option.

Collin Hays · Answer

I think your ideas of getting creative could make a big difference.  The key would be marketing and getting the message to your audience as to the specials that you offer - retreats, etc.  Even small, half-day or full-day office retreats could be possible.  I would really do a lot of digging as to what comparable homes are doing during the off months so that you go in "eyes wide open".

The addition of a hot tub is a wonderful idea, and will make your property more desirable throughout the year.  In TN, I tell our clients that, if you do not have a hot tub, it's actually a significant detractor.

Good luck to you!

Collin Hays · Answer

Generally speaking, the northeast is quite seasonal.  I've looked at Cap Cod and Cape Ann - both are lovely and in fact I am traveling to Cape Ann this week - but there opportunity just doesn't seem there to rent the properties consistently throughout a year.  I wish it was different.

John Underwood · Answer

How long is the on season?

What ever it is it will be shorter than a similar property in a south eastern state.

Luke Carl · Answer

Sure why not?

Eden Mendel · Answer

I’m a bit confused,

Does a 2Bed/1Bath averages 300$ a night during the hot season? 900$ would be a monthly renter?

Thanks in advance

Eden Mendel · Answer

Thanks for your thoughts and through reply!

I’m indeed a newbie when it come to STR and my analysis of this type of properties is simply plugging number using common sense and whatever available data I can find on the web.

Other than personal experience, is there any other way you’d recommend learning about that market?

Cliff H. · Answer

@Eden Mendel you should know the market enough to know whether the deal makes financial sense before throwing money at a STR. Book yourself a few weekends in area. Know the towns and regulations.

NH is a 3 season state. I’m father north by Waterville. July, August, October, January, February, & March are insane. Everything else is either holiday week bound and break even months at best. That’s New England. If want 4 season rentability, go south. Not complaining (I’ve yet to find a ski mountain on Georgia I like), just stating the reality of our region.

Good luck!

First Rental Property in NH - is it worth it?

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