Real Estate investors looking for cash flow and appreciation are narrowing in on New Hampshire to build rental portfolios. The Granite State is a current favorite of real estate investors due to many factors including a strong and stable economy, a growing and highly education population with a healthy demand for housing! Easy Street Capital is proud to be a leading provider of investment property loans for real estate investors looking to build investment portfolios in New Hampshire!
Investment Property Loan Types
When it comes to real estate investing in New Hampshire, there are many markets and types of investment property loans to choose from. New Hampshire has a lot of older properties with great bones, but in need of renovators to restore them to their former glory. For investors adept at rehabbing older properties, hard money renovation loans are a perfect choice! These loans allow you to buy a property quickly and finance your rehab costs as well! Once you are done, you can either “flip” the property for a quick profit or pursue the BRRRR Strategy by renting it out and then refinancing into a long-term, low-rate DSCR loan!
Long-term DSCR Loans are also great for investing in turnkey rental properties. Turnkey refers to properties that are rent-ready and require no renovations. Move-in ready single-family homes and fully furnished short term or medium-term rentals are great for cash flow and price appreciation. Most DSCR Loans are fixed rates for thirty years, locking you into a fixed interest rate for the long-term. While, if historical patterns continue, rents and appreciation increase steadily each year. Bottom line, debt costs stay the same while cash flow increases!
New Hampshire: Landlord-Friendly State
New Hampshire is a very landlord friendly state. Owners of rental properties, such as typical DSCR Loan borrower, are secure investing in the state. Unlike some other states, New Hampshire does not have any form of rent control. This means rental property owners are free to set rents at whatever level the market will bear. This can be an advantage for landlords who are looking to maximize their profits. In addition, if a tenant fails to pay rent or violates the terms of their lease, New Hampshire landlords can begin the eviction process relatively quickly. For example, landlords can serve a tenant with a “7-day notice to quit” if they fail to pay rent. After just one weeks, the landlord can file a complaint for eviction in court.
Where To Invest In Real Estate In New Hampshire
New Hampshire is a favorite market for real estate investors because of its diverse options. There are lots of varying markets that offer great potential for each type of real estate investor. Manchester is the state’s largest city and capital. Concord, located approximately 18 miles north of Manchester, is the third largest city in the state as well as the capital. It is also a growing market with affordable options for investors. Hanover is home to the Ivy League university, Dartmouth College. Durham has a sizable population and is home to the University of New Hampshire. Conway is a historic quaint town with both a strong permanent population of long-term renters and demand drivers for short term rentals.
Manchester
Manchester is the largest city in New Hampshire, with a population of over 115,600 people. The greater Manchester metropolitan statistical area has a population of approximately 400,000. Manchester’s diverse economy encompasses various sectors, including finance, manufacturing, and healthcare. It is home to prominent companies such as Velcro Brand, Elliot Health System, and Southern New Hampshire University, providing a strong foundation for employment and rental demand. The city’s numerous colleges and universities, including the University of New Hampshire at Manchester and Saint Anselm College, attract a significant student population, making it an ideal market for rental properties. With its bustling economy, and educational institutions, Manchester offers enticing opportunities for real estate investors seeking stable returns and a growing rental market.
Manchester’s robust economy and diverse population make it an attractive market for real estate investors. The city’s expanding job market and population growth create a consistent demand for rental properties, offering opportunities for long-term leases, medium-term rentals, and short-term rentals. Manchester is also a thriving tourist destination, with attractions like the Currier Museum of Art, the Palace Theatre, and the scenic Merrimack River. The city’s rich history, vibrant cultural scene, and minor league baseball teams like the New Hampshire Fisher Cats make it a sought-after location for visitors. This presents a thriving market for short-term rental properties in Manchester.
According to Zillow, Manchester possesses a compelling rental market with the average home value sitting at $390,595, showing a 9.7% increase compared to last year as of February 2024. This upward trend indicates a strong demand for housing in the city, presenting an excellent opportunity for investors to diversify their portfolios in the thriving East Coast market.
Overall, Manchester’s strong economy and diverse attractions make it a great market for real estate investors looking to invest in single-family and multifamily properties.
Concord
Concord is situated in central New Hampshire, with a population of over 43,900 residents, making it the state’s capital and the third-largest city. The city has a diversified economy, with industries such as agriculture, healthcare and technology playing key roles. With an impressive unemployment rate of just 2.9%, significantly below the national average of 6.0%, Concord offers a stable and prosperous environment, making it an ideal destination for renters and a promising market for real estate investors.
Real estate investors can find affordable investment opportunities in Concord, with the median sales price for a single-family home in February 2024 at $425,000, according to Redfin. In addition, Zillow reports that the average market rent in Concord in March 2024 was $2,001 per month, making it a lucrative market for rental properties. Investors using rental loans can take advantage of low-down payment options and earn substantial cash flow with potentially high cash-on-cash returns.
Concord also displays a plethora of artistic attractions that entrance both residents and visitors alike. The city is home to prominent establishments like the Capitol Center for the Arts and the McAuliffe-Shepard Discovery Center, offering enriching experiences in the realms of arts, science, and exploration. The city benefits from its strategic location that attracts tourists year-round, fueling a vibrant market for short-term rentals. This blend of cultural offerings and prime location positions Concord as an alluring destination for real estate investors seeking opportunities in the thriving short-term rental market.
Concord offers a dynamic economy and a range of appealing attractions, making it an ideal market for real estate investors seeking profitable investment opportunities. With a growing market and the potential for strong returns, investors can take advantage of the favorable investment climate in Concord.
Hanover
Hanover is the proud home of Dartmouth College, an Ivy League university, with a student population of over 6,000. Alongside Dartmouth, Hanover is also known for its vibrant intellectual atmosphere, attracting scholars and learners from around the world. Hanover is renowned for its rich arts and cultural scene, featuring a variety of museums, galleries, and theaters. With a population of 11,000 residents, Hanover exudes a vibrant and diverse atmosphere. The presence of Dartmouth College, with its student population, makes Hanover an appealing market for real estate investors specializing in student housing. Investing in well-located properties near the university can yield higher returns, given the consistent demand for rental properties from the student community.
Hanover presents favorable prospects for real estate investors, offering affordable investment opportunities. The current median sales price for a single-family home stand at $277,500, as reported by Redfin. In terms of rental properties, Hanover boasts an attractive market, with an average monthly rent of $2,800, as indicated by Zillow. Investors can capitalize on these factors, leveraging rental loans to optimize their returns, thanks to low-down payment options and the potential for substantial cash flow and impressive cash-on-cash returns.
Moreover, Hanover is a popular destination for short-term rental investors. The town hosts various annual events, including the Hanover Chamber Music Festival and the Dartmouth College Winter Carnival, attracting a steady stream of visitors. Additionally, Hanover’s rich history is reflected in its charming historic buildings and landmarks, such as the Baker-Berry Library and the Hood Museum of Art, which serve as alluring attractions for tourists.
With its lively cultural scene and the presence of Dartmouth College, Hanover offers an excellent opportunity for investors to tap into the demand for short-term rentals and maximize their rental income.
Durham
Durham is a thriving town located in Strafford County, with a population of over 16,000 residents. The town displays a varied economy, with industries such as education, healthcare, and technology contributing to its growth. Durham is known for being the home of the University of New Hampshire. Additionally, Durham offers a range of enlightening attractions, including art galleries, theaters, and music venues, providing residents and visitors with a rich cultural experience. The town’s charming downtown area is dotted with local shops, restaurants, and cafes, creating a welcoming and lively atmosphere for all to enjoy.
Durham offers nature enthusiasts the beautiful trails and scenic views at places like College Woods and Wagon Hill Farm. There are also activities for history buffs like the Durham Historic Association Museum. The University of New Hampshire campus offers cultural events, art exhibitions, and sporting events throughout the year. Visitors can also enjoy shopping and dining experiences in downtown Durham, with its charming shops and local eateries. With its blend of natural beauty, historical sites, and vibrant community, Durham provides a delightful destination for both residents and visitors.
Real estate investors in Durham can capitalize on the strong demand for both long-term and short-term rentals. The town is home to the University of New Hampshire, attracting a large student population and creating a consistent need for rental properties. Durham also hosts various events and festivals, such as the Durham Fair, which draws in visitors and present an excellent opportunity for short-term rental income. With its charming location and proximity to major cities like Boston, Durham offers investors a promising market to tap into.
Conway
With a population of over 10,500, Conway serves as the largest community in the county and is located on the edge of the White Mountain National Forest. The town comprises five villages, including Conway, North Conway, and Center Conway. Conway is a major economic center, with tourism being its primary driver, attracting visitors to explore the Eastern White Mountains and enjoy outdoor activities. For astute real estate investors, Conway presents a promising opportunity for short-term rental properties, with the potential for lucrative returns. The town is also home to a growing technology sector, providing employment opportunities.
Conway is also a haven for outdoor enthusiasts, providing opportunities for hiking, camping, and exploring the nearby national forests. Surrounded by breathtaking mountain vistas, Conway creates an idyllic setting for residents and visitors alike, offering a peaceful escape in the heart of New Hampshire’s stunning landscape. Key attractions include natural sites like Cathedral Ledge and Conway Lake, as well as popular ski resorts, which bring in even more visitors and potential rental income.
AirDNA, the leading data provider for investors in short term rentals, gives Conway a Market Grade of 82/100, with an 90/100 strong rating for investability. Per AirDNA, investors can expect annual revenue of $64,600. Investors that use DSCR loans from a forward-thinking lender like Easy Street Capital that qualifies the income of the property using AirDNA projections can likely rake in the cash flow.
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Ready to invest in real estate in New Hampshire? Easy Street Capital is top lender for investment property loans in New Hampshire, both hard money rehabs and long-term investment properties.
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