I am thinking of investing in a multifamily 20+ units in New Hampshire. Looking to network with other investors with experience in that market. How are landlord tenant laws (How long and how much does it take to evict a bad tenant). How are the cap rates? Would you recommend New Hampshire for a first larger mulitfam (Largest multifam I investing in is a 3fam).
Hey @An Duong ! I have ~20 units in Southern NH and happy to chat sometime. Tenant laws are favorable (at least compared to MA), as are cap rates. Answer to whether 20 units is the right move for you really depends on your situation. Will say that it's hard to find 20 units all under one roof, most of what you'll see will be 2-3 buildings sold as a portfolio to comprise the 20 units. You can probably find better deals piecing together a portfolio of 5-10 unit buildings at a time, but will be a bigger headache.
Hi An. I am a Multifamily agent/ investor and property manager here in NH. If you looking to network with other investors, I have a private FB group called Multifamily Investors of NH and host a Multifamily Meetup the last Wednesday of the month. I’d love to connect.
Have a great day!
Good morning An. I sent you an invite to join the group via FB messenger. I'd love to jump on a call with you. Whats you schedule look like this week?
Hi there @An Duong , lots of questions to unpack your post here! I'll try and provide some answers to your questions:
How are landlord/tenant laws? Well that depends on where you compare them to... I see you're from Boston so you're probably looking for a comparison of NH / MA landlord-tenant laws. NH tends to be much more of a balanced state and even leans a bit in favor of landlords. By comparison, MA tends to lean much more in favor of tenants. Even the way both states reacted to enacting eviction moratoriums show their true colors. NH enacted one in March of 2020 and it expired by the end of June... our firm was filing and serving notices the very next day for all of the non-paying folks in NH. In MA, the moratorium was enacted around the same time but is still in effect until October 17th! One particular resident that is living in an apartment complex in MA I'm selling has not paid a penny's worth of rent since March and is over $9,000 in the hole.
How are the cap rates? These vary based on location. Southern NH is where most of the larger apartment complexes are and most of the cap rates here hover between 6% - 7.5%. We're selling an 18 unit right now with a cap rate just north of 6.0% and a 22 unit with a cap rate of 6.6%. Sometimes they do go lower though as we've definitely seen some sub 6% cap rates on larger apartment complexes in recent months. Overall, cap rates are stronger than Greater Boston but still they are getting squeezed a little bit.
Would you recommend NH for larger multifamily investing? I might be a little biased here because I've lived in NH my whole life but I believe the answer is yes. I'd strongly recommend investing here. Rents are continuing to go up, landlord/tenant laws are balanced, property prices are high right now but not outrageous... there are a lot of positives to investing here.
We have a few opportunities on the market right now and a couple coming up. Would always be happy to chat about what's available and give you my opinion on specific properties you may be looking at. Happy investing!