Thoughts on Lakes Region multi market

3 Replies

I’m currently targeting the Laconia, Tilton and Franklin market, and was wondering what local investors thoughts are on the area. Currently looking for multi family properties. I do know Meredith and Moultonborough areas are in need of affordable multi housing,  but the prices there are too high for me right now.   Laconia seems to show yearly slow growth. Also as a side note,  I’m looking for an aggressive buyers agent to get my offers out there.  

I am not as familiar with Tilton or Franklin, but I do know the Laconia market has had some appreciation the last few years to bring prices back to what they were.  The risk is just knowing this is seasonal area and will be subject to price drops as there are a lot of 2nd homes in the area.  Limited multi-family units so may need to connect via some of the local meet-ups to see what experience others have had.  Good luck

@Kyle Lacasse , based on recent analysis of these areas, I passed on two wholesale deals in Franklin; the economy does not appear to be diverse or vibrant enough to bank on (at least from my discussions with a few other investors). I believe Laconia is better in terms of reliability/workforce. If you can get property near downtown areas or water, then I believe you can analyze whether short-term rentals or long-term are best for ROI. I've heard the condos in Weirs are doing well, but investors I've spoken to are not convinced the Weirs in Laconia is a great place to invest in at this time (although the Town Planner has done specific things to improve that main area that attracts all the Bike Week crowd). Apartment rentals/condos in Tilton claim to have waiting lists at this time, so maybe a shortage there to look at. Without knowing rehab costs, I've seen multi-units in Laconia for as low as $40-50K/unit, while better assets (both Laconia and Tilton) I've seen between $75K-100K/unit. I would recommend running numbers on a few available ones but account for only Cash Flow and NO appreciation. Good Luck!

You may want to also consider that Brady Sullivan is opening a brand new Laconia complex in May (2019) - Apple Ridge. They have 1-3 bed garden style apartments available from $1085 - $1340.  Not sure exactly how many units they have, but I'd guess over 100.

I agree with @Liz Murphy that Laconia has had some modest appreciation the last couple of years. I estimate that my SFR there has seen a roughly 10-15% increase in value in the last 4 years -- not stellar, but it's not the best Market to begin with.

Prices are still fairly depressed in Laconia compared to surrounding towns. That means there are some cheap properties to be had. The question is if the city will ever really be able to turn itself around.