Investment Strategy: Southern New Hampshire Rural Real Estate Development

Southern New Hampshire's rural areas present a unique opportunity for investors seeking strong returns through strategic land acquisition and development. With proximity to Boston (60-90 minutes) and a growing remote workforce, these markets offer undervalued properties with high upside potential when developed with the right partner.

Market Advantages

1. Demographic Shifts
   • Boston metro professionals seeking affordable housing with more space
   • Remote workers migrating from high-cost urban centers
   • Growing retiree population from Massachusetts
2. Economic Drivers
   • Lowest state taxes in New England (no income or sales tax)
   • Strong regional employment in tech, healthcare and manufacturing
   • Expanding broadband infrastructure enabling rural work
3. Supply/Demand Imbalance
   • Limited new construction in rural towns
   • Aging housing stock in need of renovation
   • High barriers to entry for large developers

Target Investment Strategies

1. Workforce Housing Development

• Concept: 20-50 unit clustered developments on 5-10 acre parcels
• Locations: Within 10 miles of Route 101 corridor (Milford, Peterborough, Jaffrey)
• Partner Profile: Local contractor with subdivision experience
• Projected Returns: 18-22% IRR with 3-5 year hold

2. Agri-Tourism Properties

• Concept: Convert farmland to mixed-use with farm stays, event space
• Locations: Cheshire County (Keene, Walpole, Harrisville)
• Partner Profile: Hospitality operator with agricultural experience
• Projected Returns: 25%+ IRR with value-add components

3. Manufactured Housing Communities

• Concept: Acquire/develop 55+ communities with modern manufactured homes
• Locations: Along I-93 corridor (Plaistow, Salem, Windham)
• Partner Profile: MHC operator with NH experience
• Projected Returns: 12-15% cash-on-cash with low turnover

Development Partner Criteria

When selecting a local development partner, prioritize:

1. Local Market Knowledge
   • Municipal approval process expertise
   • Relationships with planning/zoning boards
   • Understanding of septic/well requirements
2. Proven Track Record
   • Completed similar projects in last 3 years
   • References from local officials
   • No outstanding litigation
3. Financial Alignment
   • Willingness to co-invest
   • Transparent fee structures
   • Performance-based incentives

Risk Mitigation

1. Entitlement Risk
   • Phase deposits tied to milestone approvals
   • Partner with local land use attorney
   • Pre-application meetings with town boards
2. Construction Risk
   • Fixed-price contracts with reputable builders
   • Contingency reserves (10-15%)
   • Third-party construction monitoring
3. Exit Risk
   • Pre-leasing programs for rentals
   • Relationships with regional brokers
   • Flexible hold periods with refinance options

Next Steps

1. Market Tour - 3-day property tour of southern NH counties
2. Partner Identification - Interview 3-5 qualified local developers
3. Site Selection - Identify 2-3 potential parcels under contract
4. Feasibility Study - Conduct 60-day due diligence on top site

Southern New Hampshire's rural markets offer compelling fundamentals for investors who can navigate the development process with the right local partner. The region combines New England charm with growing demand drivers that create multiple paths to profitability.