Is this idea for owning a second home on Winnipesaukee crazy?

JasonG · 05-21-2017, 07:15 PM

Great feedback here, thanks!
I am a NH resident. Being Self-employed I have some flexibility with my time.

It would be tough owning and not always going up.

So it looks like this will cover a good amount of the expenses. Since winter is basically a zero rental, I have to assume it will cover about half of everything? Lots of variables I know to nail down a %, but the thoughts of it covering most or all of the mortgage and expenses based on 2-3 good months of rent is just not going to happen.

Descant · 05-21-2017, 08:29 PM

There is a segment of the population, e.g. teachers, ski staff, who will rent from September through June at reduced rates. They may not cover expenses, but they will pay some portion, and somebody is there to prevent freeze-up and other winter problems as well as, say, vandalism, that is a more likely with a vacant property. Note: Some condos are summer only as Laconia shuts off the water for those places where it is not buried deep enough.

AC2717 · 05-22-2017, 07:59 AM

it can work
I started 11 years ago 400 sqft, on the lake, in a cottage association, tight budget, needed work

and enjoying every second of it

Pam · 05-22-2017, 08:16 AM

The posts here raise really legitimate points, but my husband and I bought a small summer cottage over twenty years ago, and it's been one of the best things we ever did. In the beginning, we had just a seasonal camp that we rented for all but a couple of primetime summer weeks, and which we used ourselves on weekends in the spring and fall. With our work schedules, this was fine, and we never had any problems renting or with tenants, either renting independently or through an agency. Yes, it's work, but you get to be in a beautiful place while you're doing the preparation, etc., plus it keeps your place in good shape. Our cottage got cleaner and cleaner through the rental season.

Ten years ago, we tore down the cottage and built a year round house to accommodate our larger family, but we still rented most prime-time weeks. Just last year, we switched the balance so that now we use the place more than we rent. Our summer cottage has worked hard for us and it's been adaptable as our lives have changed, our children have grown, etc. Now we have a wonderful year round getaway that our children and grandchildren also enjoy. I wouldn't change any of it.

AC2717 · 05-22-2017, 10:39 AM

Quote:

Originally Posted by Pam

The posts here raise really legitimate points, but my husband and I bought a small summer cottage over twenty years ago, and it's been one of the best things we ever did. In the beginning, we had just a seasonal camp that we rented for all but a couple of primetime summer weeks, and which we used ourselves on weekends in the spring and fall. With our work schedules, this was fine, and we never had any problems renting or with tenants, either renting independently or through an agency. Yes, it's work, but you get to be in a beautiful place while you're doing the preparation, etc., plus it keeps your place in good shape. Our cottage got cleaner and cleaner through the rental season.

Ten years ago, we tore down the cottage and built a year round house to accommodate our larger family, but we still rented most prime-time weeks. Just last year, we switched the balance so that now we use the place more than we rent. Our summer cottage has worked hard for us and it's been adaptable as our lives have changed, our children have grown, etc. Now we have a wonderful year round getaway that our children and grandchildren also enjoy. I wouldn't change any of it.

described our last ten yeats to a T
now in the process of the same, this week the new place will be finished!!!

TheProfessor · 05-22-2017, 06:59 PM

Quote:

Originally Posted by JasonG

So it looks like this will cover a good amount of the expenses.

Some do this and apparently are quite good at it.

My neighbor rents newer home in Summer season. Home not used in Winter.

Let's see.

These are items that I know of.

He has replaced oven/stove, microwave, dishwasher, both toilets, washer/dryer, television set (two times) and took down/apart the home theater system. There is more. I can't remember.

Then there is the trash removal. Paid Saturday cleanings. Moving lawn.

Not sure if mandatory to state to home owners insurance company that home is a rental.

Biggd · 05-23-2017, 06:00 AM

The last place that we rented 3 years ago in Meredith was a 3br log cabin on the water for $2800. The lady lived in it through the winter months and rented it out all summer long. She moved in with a friend during the summer and I'm sure she had to pay rent. Personally, now that I'm an owner, I could never give up my summers at the lake. That's the reason I bought in the first place.

garysanfran · 05-24-2017, 08:15 AM

My family has been doing it for years. July 4th through Labor Day. We enjoy the place during the spring and fall and make quite a bit of $ during the summer to pay the bills. We have managed the rental process ourselves and now use Bayside Rentals with great success. If Meredith would lower its tax rate, I might give up the rental process.

jbolty · 05-24-2017, 08:42 AM

My friends have a cabin in Wonalancet that they built as an investment and a getaway from the hustle and bustle of Moultonboro. They rent it 3-4 times a year and get enough to pay the taxes and pocket a little. It's a lot of work getting it ready, cleaning and making sure everything is working. They use Home Away for the advertising

Biggd · 05-24-2017, 08:42 AM

Quote:

Originally Posted by garysanfran

My family has been doing it for years. July 4th through Labor Day. We enjoy the place during the spring and fall and make quite a bit of $ during the summer to pay the bills. We have managed the rental process ourselves and now use Bayside Rentals with great success. If Meredith would lower its tax rate, I might give up the rental process.

Compared to some of the surrounding towns, Meredith's taxes are reasonable. My house is in Meredith and that's the reason I bought there.

MAXUM · 05-25-2017, 05:21 PM

Taxes in Meredith have been creeping up no doubt about that.

Biggd · 05-25-2017, 07:06 PM

Quote:

Originally Posted by MAXUM

Taxes in Meredith have been creeping up no doubt about that.

That's because values are creeping back up after being down for so long. That's a good thing if you're looking to sell but bad if you're looking to buy. I bought my place almost 3 years ago and it's value/assessment has increased along with the tax bill but I still think it's much cheaper than many of the surrounding towns.

MAXUM · 05-25-2017, 08:50 PM

Quote:

Originally Posted by Biggd

That's because values are creeping back up after being down for so long. That's a good thing if you're looking to sell but bad if you're looking to buy. I bought my place almost 3 years ago and it's value/assessment has increased along with the tax bill but I still think it's much cheaper than many of the surrounding towns.

Well with assessments creeping up the tax rate should go in the opposite direction however that hasn't been happening.

Descant · 05-25-2017, 11:01 PM

Quote:

Originally Posted by MAXUM

Well with assessments creeping up the tax rate should go in the opposite direction however that hasn't been happening.

Right. The market changes much faster than the assessments. Most towns also show a relationship of assessment to market value e.g. +3% or 98% or something similar, don't they? In any event, market values change rapidly and assessments are only done every so often and then recalculated a few years later. They are used for two different purposes, so a 1:1 comparison is probably faulty.

AC2717 · 05-26-2017, 08:36 AM

you are not buying the house, you are creating and setting up the memories which are priceless, and also developing a family atmosphere for the whole family

- from a 36 year old that has owned his place for 11 years

sky's · 05-26-2017, 08:44 AM

since moving up here from southern New Hampshire nearly 20 years ago ive always been amazed what people will pay to live on this lake. just recently i no of a couple who paid 1.5 house is nice but needs updating, but nothing crazy and yes there on top of there neighbors. all i can say is "thanks for paying my property taxes"

Biggd · 05-26-2017, 11:54 AM

Quote:

Originally Posted by AC2717

you are not buying the house, you are creating and setting up the memories which are priceless, and also developing a family atmosphere for the whole family

- from a 36 year old that has owned his place for 11 years

You're still a pup. Hopefully something doesn't come your way that throws a wrench in your plans. I owned my first place in Alton Bay at 24 years old then I got married, built a new home and had 3 kids so I couldn't afford 2 homes at the time. One had to go and it was the vacation home. It took me quite a while to get back. The memories are wonderful but at 63 I have quite a few that are higher on the list than the times spent at the lake.

JasonG · 05-26-2017, 08:10 PM

Lots of info here.
I am taking this away from it.

1. Lots of work.
2. Expect the unexpected. Unforeseen expenses, bad renters.
3. You will likely NOT cover all expenses. So you need to be able to afford some of this.
4. Do it and be happy in the end

JasonG · 05-26-2017, 08:12 PM

What are the ideal areas to get the small place for under 200k on the water from Paugus Bay to Meredith?

I often see small cottages in clusters going up the road on Paugus bay toward the weirs. I am sure they are condos of some kind. These are perfect.

Any any experience with what % down you need to put for a second home mortgage and other bank expectations?

Any input is appreciated.

05-22-2017, 07:59 AM	#3
AC2717 Senior Member Join Date: Apr 2007 Location: Maynard, MA & Paugus Bay Posts: 2,573 Thanks: 753 Thanked 354 Times in 266 Posts	it can work I started 11 years ago 400 sqft, on the lake, in a cottage association, tight budget, needed work and enjoying every second of it __________________ Capt. of the "No Worries"

05-24-2017, 08:15 AM	#8
garysanfran Senior Member Join Date: Jul 2009 Location: San Francisco/Meredith Posts: 1,563 Thanks: 660 Thanked 670 Times in 344 Posts	Renting out your home... My family has been doing it for years. July 4th through Labor Day. We enjoy the place during the spring and fall and make quite a bit of $ during the summer to pay the bills. We have managed the rental process ourselves and now use Bayside Rentals with great success. If Meredith would lower its tax rate, I might give up the rental process. __________________ Gary ~~~~_/) ~~~ ~~~~~~~~

05-26-2017, 08:36 AM	#15
AC2717 Senior Member Join Date: Apr 2007 Location: Maynard, MA & Paugus Bay Posts: 2,573 Thanks: 753 Thanked 354 Times in 266 Posts	you are not buying the house, you are creating and setting up the memories which are priceless, and also developing a family atmosphere for the whole family - from a 36 year old that has owned his place for 11 years __________________ Capt. of the "No Worries"

05-26-2017, 08:12 PM	#19
JasonG Senior Member Join Date: May 2006 Posts: 310 Thanks: 48 Thanked 45 Times in 33 Posts	So here is the NEXT QUESTION... What are the ideal areas to get the small place for under 200k on the water from Paugus Bay to Meredith? I often see small cottages in clusters going up the road on Paugus bay toward the weirs. I am sure they are condos of some kind. These are perfect. Any any experience with what % down you need to put for a second home mortgage and other bank expectations? Any input is appreciated.

05-21-2017, 07:15 PM	#1
JasonG Senior Member Join Date: May 2006 Posts: 310 Thanks: 48 Thanked 45 Times in 33 Posts	Great feedback here, thanks! I am a NH resident. Being Self-employed I have some flexibility with my time. It would be tough owning and not always going up. So it looks like this will cover a good amount of the expenses. Since winter is basically a zero rental, I have to assume it will cover about half of everything? Lots of variables I know to nail down a %, but the thoughts of it covering most or all of the mortgage and expenses based on 2-3 good months of rent is just not going to happen.

05-21-2017, 08:29 PM	#2
Descant Senior Member Join Date: Mar 2006 Location: Merrimack and Welch Island Posts: 4,341 Thanks: 1,339 Thanked 1,621 Times in 1,053 Posts	There is a segment of the population, e.g. teachers, ski staff, who will rent from September through June at reduced rates. They may not cover expenses, but they will pay some portion, and somebody is there to prevent freeze-up and other winter problems as well as, say, vandalism, that is a more likely with a vacant property. Note: Some condos are summer only as Laconia shuts off the water for those places where it is not buried deep enough.

05-22-2017, 08:16 AM	#4
Pam Senior Member Join Date: May 2004 Posts: 63 Thanks: 22 Thanked 58 Times in 22 Posts	The posts here raise really legitimate points, but my husband and I bought a small summer cottage over twenty years ago, and it's been one of the best things we ever did. In the beginning, we had just a seasonal camp that we rented for all but a couple of primetime summer weeks, and which we used ourselves on weekends in the spring and fall. With our work schedules, this was fine, and we never had any problems renting or with tenants, either renting independently or through an agency. Yes, it's work, but you get to be in a beautiful place while you're doing the preparation, etc., plus it keeps your place in good shape. Our cottage got cleaner and cleaner through the rental season. Ten years ago, we tore down the cottage and built a year round house to accommodate our larger family, but we still rented most prime-time weeks. Just last year, we switched the balance so that now we use the place more than we rent. Our summer cottage has worked hard for us and it's been adaptable as our lives have changed, our children have grown, etc. Now we have a wonderful year round getaway that our children and grandchildren also enjoy. I wouldn't change any of it.

05-23-2017, 06:00 AM	#7
Biggd Senior Member Join Date: Nov 2016 Location: Waltham Ma./Meredith NH Posts: 4,086 Thanks: 2,202 Thanked 1,187 Times in 754 Posts	The last place that we rented 3 years ago in Meredith was a 3br log cabin on the water for $2800. The lady lived in it through the winter months and rented it out all summer long. She moved in with a friend during the summer and I'm sure she had to pay rent. Personally, now that I'm an owner, I could never give up my summers at the lake. That's the reason I bought in the first place.

05-24-2017, 08:42 AM	#9
jbolty Senior Member Join Date: Jun 2015 Posts: 663 Thanks: 320 Thanked 251 Times in 150 Posts	My friends have a cabin in Wonalancet that they built as an investment and a getaway from the hustle and bustle of Moultonboro. They rent it 3-4 times a year and get enough to pay the taxes and pocket a little. It's a lot of work getting it ready, cleaning and making sure everything is working. They use Home Away for the advertising

05-25-2017, 05:21 PM	#11
MAXUM Senior Member Join Date: Apr 2004 Location: Kuna ID Posts: 2,755 Thanks: 246 Thanked 1,942 Times in 802 Posts	Taxes in Meredith have been creeping up no doubt about that.

05-26-2017, 08:44 AM	#16
sky's Senior Member Join Date: Jan 2010 Posts: 273 Thanks: 68 Thanked 76 Times in 52 Posts	since moving up here from southern New Hampshire nearly 20 years ago ive always been amazed what people will pay to live on this lake. just recently i no of a couple who paid 1.5 house is nice but needs updating, but nothing crazy and yes there on top of there neighbors. all i can say is "thanks for paying my property taxes"

05-26-2017, 08:10 PM	#18
JasonG Senior Member Join Date: May 2006 Posts: 310 Thanks: 48 Thanked 45 Times in 33 Posts	Lots of info here. I am taking this away from it. 1. Lots of work. 2. Expect the unexpected. Unforeseen expenses, bad renters. 3. You will likely NOT cover all expenses. So you need to be able to afford some of this. 4. Do it and be happy in the end