Major Market Regions

• Southern Tier (Nashua, Salem, Manchester): Boston commuter market, strongest job growth, highest property values
• Seacoast Region (Portsmouth, Hampton, Dover): Tourism, high-end properties, strong seasonal rental demand
• Lakes Region (Laconia, Meredith, Wolfeboro): Vacation properties, seasonal rentals, retirement destinations
• White Mountains (North Conway, Lincoln): Tourism-driven, ski areas, outdoor recreation, seasonal demand
• Upper Valley (Lebanon, Hanover): Dartmouth College influence, healthcare employment, stable rental demand

Each region has distinct advantages and challenges. Southern markets offer the strongest year-round demand and appreciation potential but higher entry costs. Vacation destinations provide stronger seasonal cash flow but greater management complexity and more cyclical values.

Secondary/Tertiary Markets

• Mill Towns (Berlin, Rochester, Claremont): Lower entry points, higher yields, revitalization potential
• Western NH (Keene, Peterborough): College influence, artistic communities, moderate growth
• Capital Region (Concord, Hooksett): Government employment, stable demand, middle-market properties
• Border Communities (Pelham, Plaistow): Massachusetts commuter markets with tax advantages

Secondary markets often offer better cash flow potential with more affordable entry prices but potentially slower appreciation and more management challenges. These areas may require more local market knowledge and stronger property management.

Key Market Analysis Metrics

• Population Growth: Focus on southern tier communities with 5-10% growth over past decade
• Job Growth: Areas with diverse employment bases beyond seasonal tourism
• Income Trends: Communities with rising median incomes support rent growth
• Rental Demand: Vacancy rates below 3% indicate strong rental markets
• Price-to-Rent Ratios: Look for ratios under 15 for better cash flow
• Development Activity: Limited new construction often signals supply constraints
• School Districts: Top-performing districts command premium values
• Property Tax Rates: Significant variations between municipalities affect returns

New Hampshire’s compact size allows investors to feasibly consider multiple markets within the state. Successful investors often diversify across regions to balance cash flow and appreciation potential while mitigating market-specific risks.

Expert Tip: When evaluating New Hampshire markets, pay careful attention to the municipal property tax rate (“mill rate”). These rates can vary dramatically between adjacent towns – sometimes by 50% or more – creating significant cash flow differences for otherwise similar properties. For example, the city of Manchester typically has higher rates than neighboring Bedford, while Portsmouth often has lower rates than nearby Dover. Access the NH Department of Revenue Administration website for current rates by municipality.

Long-Term Buy and Hold

Best For: Investors seeking steady appreciation and tax advantages

Target Markets: Southern tier, Seacoast, Upper Valley

Property Types: Single-family homes, small multi-family (2-4 units)

Expected Returns: 3-5% cash flow, 4-7% appreciation, 7-12% total return

Minimum Capital: $70,000-$100,000 for down payment and reserves

Time Commitment: 2-3 hours monthly with property management

This strategy focuses on properties in stable locations with reliable rental demand. New Hampshire’s steady appreciation, particularly in southern regions, makes this approach attractive for patient investors seeking wealth building combined with the state’s tax advantages.

Vacation/Short-Term Rental

Best For: Investors seeking higher income with seasonal management

Target Markets: Seacoast, Lakes Region, White Mountains

Property Types: Single-family homes, condos, waterfront properties

Expected Returns: 6-12% cash flow (highly seasonal), 3-6% appreciation

Minimum Capital: $100,000-$150,000 including furnishing

Time Commitment: 5-10 hours monthly or professional management

New Hampshire’s tourism regions offer strong vacation rental potential. Properties near lakes, ski areas, and coastal areas can generate significant income during peak seasons, though management is more intensive. This strategy works best for investors comfortable with seasonal fluctuations and higher operational requirements.

Value-Add/Renovation

Best For: Active investors willing to improve properties

Target Markets: Older properties throughout the state, mill towns

Property Types: Outdated single-family, small multi-family with deferred maintenance

Expected Returns: 10-20% after renovation and stabilization

Minimum Capital: $80,000-$120,000 per project including renovation

Time Commitment: 10-20 hours weekly during renovation phase

New Hampshire’s aging housing stock (60%+ built before 1980) creates substantial renovation opportunities. This strategy works well for investors with construction knowledge or reliable contractors. Particularly effective in communities with strong demand but limited new construction.

Student Housing

Best For: Investors seeking higher yields with specific tenant market

Target Markets: Durham (UNH), Hanover (Dartmouth), Keene (Keene State), Plymouth (Plymouth State)

Property Types: Multi-bedroom houses, multi-family properties near campuses

Expected Returns: 6-10% cash flow, modest appreciation

Minimum Capital: $75,000-$120,000

Time Commitment: 4-8 hours monthly during school year

New Hampshire’s college towns offer strong rental demand with premium rents possible through by-the-bedroom leasing. This strategy requires understanding specific university housing policies and local ordinances, as some communities have enacted restrictions on unrelated occupants per dwelling.

Real Estate Agent

Role: Market knowledge, property sourcing, comparable analysis, negotiation

Selection Criteria:

• Experience with investment properties in specific regions
• Knowledge of seasonal markets if relevant to strategy
• Familiarity with municipal zoning and restrictions
• Understanding of investment metrics (cap rate, cash-on-cash, etc.)
• Access to off-market opportunities

Finding Quality Agents:

• New Hampshire Association of Realtors investor specialists
• Local real estate investment associations
• Property management company referrals
• Regional focus is critical given New Hampshire’s diverse markets

Due to New Hampshire’s status as a non-disclosure state (sales prices not publicly recorded), working with an agent who has MLS access is particularly valuable for obtaining accurate comparable sales data.

Property Manager

Role: Tenant screening, rent collection, maintenance, legal compliance

Selection Criteria:

• Experience with your property type and location
• Seasonal rental expertise if applicable
• Strong tenant screening procedures
• Clear fee structure without hidden charges
• Technology platforms for reporting and communication
• Winter maintenance capabilities

Typical Management Fees in New Hampshire:

• Single-family homes: 8-10% of monthly rent
• Small multi-family (2-4 units): 7-9% of monthly rent
• Larger multi-family: 5-7% of monthly rent
• Vacation properties: 20-35% of gross rental income
• Leasing fee: 50-100% of one month’s rent

For seasonal properties, consider companies specializing in vacation rentals with expertise in marketing, dynamic pricing, and guest management. For year-round rentals, local companies with strong tenant screening and maintenance capabilities are preferable.

Financing Team

Role: Securing optimal financing, maximizing leverage safely

Key Members:

• Mortgage Broker: Access to multiple loan options and lenders
• Community Bank Relationship: Local banks often offer better terms for NH properties
• Insurance Agent: Specialized in investment/seasonal property coverage

Financing Considerations for New Hampshire:

• Local banks often have more flexible terms for vacation properties
• Credit unions may offer better rates for primary market properties
• Insurance needs vary dramatically by region (flood, snow load, etc.)
• Seasonal properties may require higher down payments

New Hampshire’s local banks and credit unions often provide more competitive financing for investment properties than national lenders, particularly for properties in vacation areas or with unique characteristics like waterfront locations.

Support Professionals

Role: Specialized expertise for various investment aspects

Key Members:

• Real Estate Attorney: Transaction review, entity formation, landlord-tenant issues
• CPA/Tax Professional: Property tax strategies, entity structure optimization
• Home Inspector: Property condition assessment, New Hampshire-specific issues
• General Contractor: Renovations, repairs, property improvements
• Septic/Well Inspector: Critical for rural properties
• Property Tax Consultant: Abatement filings and appeals

New Hampshire properties often have unique characteristics requiring specialized knowledge, including septic systems, well water, historic district requirements, and shoreland protection regulations. Building relationships with professionals who understand these issues is particularly valuable.

Expert Tip: For seasonal properties in the Lakes Region or White Mountains, identify contractors who can provide emergency services during off-season periods. Winter damage from freeze-ups, ice dams, or snow load can be extremely costly if not addressed promptly. Some property management companies offer “winterization” and regular off-season inspections as valuable add-on services for vacation property owners who aren’t regularly present.

Location Analysis

Neighborhood Factors:

• School district quality and boundaries
• Proximity to employment centers
• Property tax rate (significant municipal variations)
• Flood zone and environmental hazards (FEMA maps)
• Seasonal considerations (tourist areas vs. year-round communities)
• Zoning restrictions and historic district requirements
• Future development plans (municipal master plans)
• Walkability and amenities (particularly important in tourist areas)

New Hampshire-Specific Considerations:

• Shoreland protection zones (250 feet from water bodies)
• Wetlands setback requirements
• Septic system regulations in non-sewered areas
• Water access rights for lakefront properties
• Seasonal road maintenance (some roads not maintained in winter)
• Snow removal requirements and liabilities
• Conservation easements and land use restrictions

New Hampshire’s small municipal governments and variable zoning create significant differences between communities. Research not just the town or city, but the specific neighborhood and zoning district, as regulations can change dramatically within short distances.

Financial Analysis

Income Estimation:

• Research comparable rental rates (local property managers are key sources)
• Account for seasonal variations in vacation markets
• Calculate both peak and off-season rates for vacation properties
• Consider occupancy rates by season and location
• Analyze current lease terms if property is tenant-occupied

Expense Calculation:

• Property Taxes: 1.8-2.5% of value annually (verify specific municipal rate)
• Insurance: 0.4-0.8% of value annually (higher for coastal/seasonal)
• Property Management: 8-10% of rent (20-35% for vacation rentals)
• Maintenance: 5-15% of rent depending on age/condition
• Capital Expenditures: 5-10% of rent for long-term replacements
• Utilities: Often higher than national averages due to heating costs
• Snow Removal: $1,000-2,500 annually depending on location
• Vacancy: 3-6% for year-round; 40-60% for seasonal properties

Key Metrics to Calculate:

• Cap Rate: Net Operating Income ÷ Purchase Price (aim for 4-7%+)
• Cash-on-Cash Return: Annual Cash Flow ÷ Total Cash Invested (aim for 6%+)
• Gross Rent Multiplier: Price ÷ Annual Gross Rent (lower is better)
• 1% Rule: Monthly rent should be ≥0.8-1% of purchase price
• 50% Rule: Operating expenses typically ~50% of rent (excluding mortgage)

New Hampshire investors should be particularly careful with property tax estimates, as they represent a larger portion of expenses than in many other states and can vary dramatically between municipalities. For vacation properties, accurate seasonal occupancy projections are critical to avoid overestimating income.

Physical Property Evaluation

Critical Systems to Assess:

• Foundation: Stone foundations common in older properties
• Roof: Snow load capacity, ice dam prevention measures
• Heating System: Age, efficiency, fuel type (oil, propane, natural gas)
• Insulation: Critical for energy efficiency in cold climate
• Electrical: Many older homes require updates to meet modern needs
• Plumbing: Freeze protection, well water systems if applicable
• Septic System: Age, condition, capacity, compliance with regulations

New Hampshire-Specific Concerns:

• Radon (New Hampshire has high radon potential)
• Well water quality and quantity (arsenic common in some regions)
• Septic system condition and documentation
• Ice dam prevention measures
• Basement moisture/flooding history
• Lead paint in pre-1978 properties
• Energy efficiency (high heating costs in inefficient properties)

Professional Inspections:

• General home inspection ($400-600)
• Septic inspection if applicable ($300-500)
• Well water testing if applicable ($100-300)
• Radon testing ($150-250)
• WDI/pest inspection ($100-200)
• Lead paint testing for pre-1978 properties ($300-500)

New Hampshire’s cold climate, older housing stock, and rural infrastructure create unique property condition challenges. Thorough investigation of heating systems, insulation, and water/septic systems is particularly important for properties outside of municipal service areas.

Expert Tip: When analyzing potential New Hampshire investments, calculate heating costs carefully. Properties with inefficient heating systems, poor insulation, or electric heat can have winter utility bills that drastically impact cash flow. Request at least 12 months of utility bills from the seller to understand the seasonal patterns. Oil and propane prices can fluctuate significantly, creating additional budget uncertainty. Consider energy efficiency improvements as early value-add opportunities in older properties.

Contract and Negotiation

New Hampshire-Specific Contract Elements:

• New Hampshire Association of Realtors standard forms widely used
• Due diligence period typically 10-14 days (not a separate option period)
• Earnest money deposit (1-2% typical) held in broker’s escrow account
• Specific property disclosures required by state law
• Well and septic disclosures for properties not on municipal services
• Lead paint disclosures for pre-1978 properties

Negotiation Strategies:

• Focus on due diligence period length in competitive situations
• Consider seasonal timing in vacation areas (fall/winter often better for buyers)
• Request specific repairs rather than credits when feasible
• Negotiate winter closing dates carefully (weather delays common)
• Include fixtures and appliances explicitly in contract
• Consider seller financing options in some situations

New Hampshire uses the attorney review process common to New England, rather than a separate option period. The due diligence period serves a similar function, allowing inspections and investigations with the ability to terminate with earnest money returned if issues are discovered.

Due Diligence

Property Level Due Diligence:

• Professional home inspection (schedule immediately after contract)
• Specialized inspections as needed (septic, well, radon)
• Review of seller’s disclosure (verify all systems functional)
• Utility costs verification (request previous 12 months’ bills)
• Heating cost analysis (particularly important in older properties)
• Current lease review if tenant-occupied
• Short-term rental history/performance if applicable

Title and Legal Due Diligence:

• Title search and commitment review
• Survey review (boundary issues common in rural properties)
• Property tax verification (current and post-purchase estimates)
• Land use restriction research (conservation easements, etc.)
• Zoning compliance verification
• Shoreland/wetland protection zone identification
• Permit verification for any recent improvements

Location Due Diligence:

• Municipal property tax rate confirmation
• School district verification (boundaries may not align with towns)
• Seasonal road maintenance status (some roads not plowed in winter)
• Flood zone status (FEMA maps and historical flooding)
• Research planned developments and infrastructure changes
• Winter access considerations for remote properties

Due diligence periods in New Hampshire are typically shorter than many states, averaging 10-14 days. Begin inspections immediately after contract acceptance to ensure adequate time, especially for rural properties requiring specialized well and septic inspections.

Closing Process

Key Closing Elements:

• Attorney-assisted closings typical (not escrow-based like some states)
• Typical closing timeline: 30-45 days from contract
• Final walk-through usually conducted day before or of closing
• Both remote and in-person closings available
• Cashier’s check or wire transfer for closing funds
• Both parties typically present at closing (or represented)

Closing Costs:

• Transfer tax: 1.5% of purchase price (typically split between buyer/seller)
• Title search: $400-600
• Title insurance: $500-1,500 depending on purchase price
• Recording fees: $100-300
• Attorney fees: $800-1,500
• Lender fees: Per lender (if financing)

Post-Closing Steps:

• Transfer utilities immediately
• File for property tax assessment card from municipality
• Change locks/security codes
• Schedule professional winterization if seasonal property
• Register with HOA if applicable
• Update insurance coverage

New Hampshire’s closing process typically involves attorneys rather than title companies, reflecting the New England practice. Most transactions close at attorney offices with both parties present. For out-of-state investors, many attorneys can accommodate remote closings with advance planning.

Expert Tip: New Hampshire’s real estate transfer tax (1.5% of purchase price) is typically split between buyer and seller, with each paying 0.75%. However, this is negotiable in the purchase contract. In strong seller’s markets, buyers sometimes agree to pay the entire transfer tax as an incentive. Conversely, in buyer’s markets or with distressed properties, sellers might agree to cover the entire amount. Factor this significant closing cost into your negotiations and cash requirements.

Tenant Screening

Key Screening Elements:

• Income verification (2.5-3x monthly rent minimum)
• Credit check (minimum score typically 600-650)
• Criminal background check
• Rental history verification (previous 2-3 landlords)
• Employment verification (length of employment, stability)
• Eviction history search

Legal Considerations:

• Must comply with federal Fair Housing laws
• Consistent application of screening criteria for all applicants
• Careful documentation of reasons for application denials
• New Hampshire-specific rental application disclosures
• Security deposit limitations (one month’s rent maximum)

Thorough tenant screening is particularly important for New Hampshire properties due to the longer eviction timeline compared to some states and the potential for significantly higher utility bills during winter months. For vacation rentals, different verification processes apply, focusing on advance deposits and identity confirmation.

Lease Agreements

Essential Lease Elements:

• Term length (12-month standard, avoid winter expirations)
• Rent amount, due date, grace period, late fees
• Security deposit amount and conditions
• Utilities responsibility clearly defined
• Snow removal responsibilities specified
• Maintenance responsibilities clearly defined
• Heat minimum temperature requirements (65°F typically)
• Rules regarding alterations, smoking, noise, etc.

New Hampshire-Specific Provisions:

• Security deposit handling procedures (separate account)
• Lead paint disclosures if applicable
• Smoke and carbon monoxide detector acknowledgment
• Well and septic system care if applicable
• Winter maintenance responsibilities
• Fuel oil/propane tank ownership and filling requirements

Use New Hampshire-specific lease forms that comply with state landlord-tenant law. For vacation rentals, comprehensive rental agreements covering check-in/check-out procedures, occupancy limits, and house rules are essential to prevent misunderstandings.

Maintenance Systems

Responsive Maintenance:

• Clear protocol for tenant maintenance requests
• Categorization of emergency vs. non-emergency issues
• Response timeline expectations (faster for heat/water issues)
• Documentation of all maintenance activities
• HVAC contractor relationships (critical for winter)

Preventative Maintenance:

• Seasonal HVAC maintenance (especially pre-winter)
• Gutter cleaning (spring and fall)
• Roof inspection after winter
• Well and septic maintenance if applicable
• Chimney cleaning if wood stoves/fireplaces present
• Winterization procedures for seasonal properties

Vendor Management:

• Pre-qualified vendor list for each trade
• Snow removal contractors (critical relationship)
• 24/7 emergency heating system repair contacts
• Plumbers with freeze emergency experience
• Property watch services for vacant/seasonal properties

New Hampshire’s climate creates specific maintenance challenges, particularly related to winter weather. Preventative maintenance before winter season is critical, and rapid response to heating system failures, frozen pipes, and ice dam formation can prevent costly damage.

Financial Management

Income Management:

• Online rent collection options
• Clear late fee policies and enforcement
• Security deposit handling in separate account
• Documentation of all financial transactions
• Seasonal rate adjustments for vacation properties

Expense Management:

• Preventative maintenance budget (5-10% of annual rent)
• Capital expenditure reserves (5-10% of annual rent)
• Property tax planning and payment schedules
• Insurance review and competitive bidding
• Utility cost monitoring and energy efficiency improvements
• Snow removal budget (significant in northern regions)

Accounting and Reporting:

• Monthly financial statements
• Annual profit/loss summaries
• Tax document preparation (1099s, etc.)
• Property tax assessment monitoring
• Return on investment calculation and tracking

For vacation properties, sophisticated booking and revenue management systems are essential to maximize income during peak periods while maintaining competitive occupancy in shoulder seasons. For traditional rentals, careful attention to winter expenses and property tax obligations is critical for accurate cash flow projections.

Expert Tip: In New Hampshire, clearly defined snow removal responsibilities in lease agreements is essential. For multi-family properties, specify whether the landlord will handle snow removal or if tenants are responsible. For single-family rentals, many landlords make snow removal the tenant’s responsibility but include minimum standards (e.g., clearing within 24 hours of snowfall). Remember that municipalities can fine property owners for sidewalks not cleared within specified timeframes, and landlords remain liable for slip-and-fall injuries regardless of lease terms assigning snow removal to tenants.

Property Tax Management

Understanding New Hampshire Property Taxes:

• Among the highest property tax rates in the nation (1.8-2.5%)
• Significant variations between municipalities
• No broad-based state income or sales taxes
• Based on assessed value determined by local assessors
• Statewide property tax rate plus local municipal, county, and school rates
• Tax bills typically issued semi-annually

Abatement Strategies:

• Abatement applications must be filed by March 1 following tax bill
• Valid grounds include assessment above market value or disproportionate assessment
• Comparable sales analysis critical for successful abatements
• Assessment review should be annual standard practice
• Professional representation on contingency fee basis available
• Appeals to state Board of Tax and Land Appeals or Superior Court if denied

Additional Tax Reduction Strategies:

• Current Use program for undeveloped land (10+ acres)
• Review of property listing data for errors
• Documentation of property condition issues affecting value
• Monitoring of assessment trends in neighborhood
• Participation in town revaluation process

Property tax management is particularly important in New Hampshire where it represents the largest operational expense for most properties. Annual review of assessments and prompt filing of abatement applications when warranted can significantly improve investment returns.

Federal Income Tax Strategies

Deductible Expenses:

• Mortgage interest (subject to TCJA limitations)
• Property taxes (subject to SALT limitations)
• Insurance premiums
• Property management fees
• Travel expenses for property management
• Repairs and maintenance
• Utilities paid by owner
• Professional services
• Depreciation of building (27.5 years for residential)
• Seasonal property closing/opening costs

Advanced Tax Strategies:

• Cost segregation studies to accelerate depreciation
• 1031 exchanges to defer capital gains
• Vacation home mixed-use strategies (personal/rental)
• Real estate professional status for active investors
• Strategic timing of major improvements
• Qualified Business Income (QBI) deduction optimization

New Hampshire investors often have greater property tax deductions than other states, potentially bumping against SALT limitations. Comprehensive record-keeping is essential, particularly for mixed-use vacation properties where personal and rental use must be carefully documented.

Entity Structuring for Tax Efficiency

Common Entity Options:

• Individual Ownership: Pass-through taxation, simplest structure
• LLC (Disregarded Entity): Pass-through taxation with liability protection
• LLC (S-Corporation Election): Potential self-employment tax savings
• Limited Partnership: Multiple investor structure with tax advantages

Entity Selection Factors:

• Number of properties owned
• Active vs. passive management
• Portfolio growth plans
• Risk profile and liability exposure
• Estate planning considerations
• Self-employment tax considerations

New Hampshire-Specific Considerations:

• No state income tax on any entity type
• Business Profits Tax (BPT) and Business Enterprise Tax (BET) considerations
• Annual report fee for business entities ($100)
• Interest & Dividends Tax (5%) for certain investment income
• Out-of-state investors may gain tax advantages through NH entities

For many investors, standard LLCs provide the optimal balance of liability protection, tax efficiency, and operational simplicity. New Hampshire’s favorable business tax environment makes it an attractive state for entity formation, particularly for investors with properties in multiple states seeking centralized management.

Expert Tip: For vacation property investors, careful tracking of personal vs. rental use days is critical for tax optimization. Properties rented for less than 15 days annually can qualify for the “Augusta Rule” (IRC Section 280A), allowing tax-free rental income. Conversely, properties with personal use exceeding the greater of 14 days or 10% of rental days are classified as mixed-use, with different expense allocation rules. Strategic scheduling of personal use and maintenance periods can significantly impact tax treatment.

Traditional Sale

Best When:

• Significant appreciation has accrued
• Local market conditions favor sellers
• Major repairs/renovations are approaching
• Investment goals have changed
• Portfolio rebalancing is desired
• 1031 exchange into other property is planned

Preparation Steps:

• Strategic improvements for maximum ROI
• Professional photography and marketing
• Timing based on seasonal market patterns (spring/summer typically best)
• Tenant coordination (selling vacant vs. occupied)
• Tax planning to minimize capital gains impact
• 1031 exchange planning if applicable

Cost Considerations:

• Agent commissions (typically 5-6%)
• Transfer tax (0.75% seller portion, negotiable)
• Attorney fees ($800-1,500)
• Capital gains taxes if not using 1031 exchange
• Repair negotiations from buyer inspections

New Hampshire’s real estate market has strong seasonal variations in many areas, with spring and summer typically bringing the most buyers and highest prices. For vacation properties, marketing during the peak season when the property shows best can significantly impact sale price and time on market.

1031 Exchange

Best When:

• Significant capital gains have accumulated
• Continuing real estate investment is planned
• Upgrading to larger/higher-quality properties
• Switching property types (residential to commercial)
• Moving investment to different markets
• Consolidating multiple properties into fewer larger assets

Key Requirements:

• Like-kind property (broadly defined for real estate)
• Equal or greater value to defer all gain
• 45-day identification period
• 180-day closing period
• Qualified intermediary to hold proceeds
• Same taxpayer/entity on title

New Hampshire-Specific Considerations:

• No state capital gains tax in New Hampshire
• Potential to exchange vacation property for primary residence market
• Strategic opportunities exchanging from high property tax towns to lower ones
• Seasonal timing considerations for optimal selling/buying conditions

1031 exchanges are particularly valuable for New Hampshire vacation property investors who have seen substantial appreciation. These exchanges can facilitate portfolio diversification or transition from vacation properties to year-round rental markets with easier management.

Cash-out Refinancing

Best When:

• Significant equity has accumulated
• Interest rates are favorable
• Property continues to cash flow after refinance
• Capital needed for additional investments
• Tax-free cash extraction preferred over sale
• Long-term hold still desired

Refinancing Considerations:

• Typically limited to 70-75% LTV for investment properties
• Requires income verification and credit qualification
• Property condition and appraisal critical
• Closing costs typically 2-3% of loan amount
• Impact on cash flow with new loan terms
• Seasonal refinancing timing (avoid winter appraisals)

Refinancing allows investors to access equity without triggering tax events, effectively leveraging appreciation while maintaining ownership of appreciating assets. This strategy can be particularly effective for long-term investors in New Hampshire’s southern tier where appreciation has been strongest.

Seller Financing/Owner Financing

Best When:

• Higher sale price is priority over immediate cash
• Steady income stream is desired
• Conventional buyers facing tight credit markets
• Property has challenges for traditional financing
• Tax benefits from installment sale desired
• Higher interest returns compared to other investments

New Hampshire-Specific Considerations:

• First-position loans should be recorded with Registry of Deeds
• Compliance with state lending regulations
• Attorney assistance strongly recommended
• Non-judicial foreclosure processes for defaults
• Tax implications of interest income (may be subject to Interest & Dividends Tax)

Seller financing can be particularly valuable for vacation properties or rural homes that may face challenges with conventional financing. This strategy can expand the buyer pool while providing the seller with reliable interest income and potential tax advantages through installment sale treatment.

Expert Tip: When planning exit strategies for New Hampshire vacation properties, consider the significant seasonal variations in market activity. Properties typically show best and attract the most buyers during their peak usage season—summer for lakefront, winter for ski properties. Off-season sales can result in significantly longer market times and lower prices. For maximum value, aim to list lake properties in late spring when summer plans are being made, and ski properties in late fall before the snow season. Conversely, buying opportunities often emerge at the end of these seasonal windows.