How To Flip Houses In New Hampshire: Step By Step (2024)

Flipping houses in New Hampshire offers a compelling opportunity for real estate investors seeking profitable ventures in a thriving market. With a low unemployment rate and limited months of inventory, the state presents a conducive environment for those eager to learn how to flip houses in New Hampshire. The enticing combination of a stable job market and a shortage of available homes creates a strong demand for well-renovated properties, making it an ideal destination for aspiring flippers.

In this comprehensive guide, we'll explore the intricacies of house flipping in New Hampshire, equipping investors with the knowledge and strategies they need to navigate the state’s competitive marketplace. We'll break down the fundamental steps of flipping houses, from finding lucrative deals to securing financing and executing successful renovations.

Whether you're a seasoned investor looking to expand your portfolio or a newcomer to the real estate market, we aim to provide you with all of the insights and tools necessary to thrive in New Hampshire's real estate market, including:

• What Is Flipping Houses?
• New Hampshire House-Flipping Statistics
• How To Flip Houses In New Hampshire (7 Steps)
• How To Find Houses To Flip In New Hampshire
• Do You Need A License To Flip Houses In New Hampshire?
• How To Flip A House In New Hampshire With No Money
• Best Cities To Flip Houses In New Hampshire
• Final Thoughts On Flipping Homes In New Hampshire

*Before we begin our guide, we also invite you to view our video on How To FLIP A HOUSE For Beginners (Step-by-Step). Host and CEO of Real Estate Skills, Alex Martinez, & Stan Gendlin share how to flip a house from start to finish as a beginner in New Hampshire! 

Together, Alex & Stan have completed over 1,000+ house flips. What you learn in this video will give you the confidence and guidance to successfully complete your fix-and-flip project!

What Is Flipping Houses?

House flipping is an exciting investment strategy involving purchasing, renovating, and selling properties for a profit. This process is a cornerstone of the real estate investing community, offering the potential for substantial returns when executed effectively.

Flipping a house typically involves three main stages that interplay to boost profit margins: buying, rehabbing, and selling.

The buying stage is where the journey begins. Investors scout for distressed properties or homes needing renovation that can be acquired at a favorable price. The key here is to identify properties with untapped potential and the possibility of being transformed into desirable homes. Once the right property is secured, the next step is rehabbing.

During the rehabbing stage, the transformation begins. This phase entails carefully planning and executing renovations to enhance the property's value and market appeal. From structural repairs and cosmetic upgrades to modernizing amenities, each improvement contributes to the overall transformation of the house. The goal is to balance cost-effective improvements and maximize the property's selling potential.

After the renovations, the refurbished property is strategically listed and marketed to attract potential buyers. Effective pricing and presentation are crucial in driving interest and securing a sale at the best price. The successful completion of each stage boosts the property's value and ensures a seamless transition from one phase to the next, ultimately leading to a successful house flip.

New Hampshire House-Flipping Statistics

From average home prices and the number of homes for sale to time-on-market data, these statistics unveil the nuances that underpin successful house-flipping ventures in the Granite State:

• Average Home Prices: $446,839
• Median Sale Price: $466,700
• 1-Year Appreciation Rate: +3.0%
• Median Days To Pending Sale: 6
• Median Days On Market: 24
• Homes For Sale: 4,185
• New Listings: 1,663
• Months Of Inventory: 1
• Foreclosure Rate: One in every 7,858 households
• Population: 1,395,231
• Median Household Income: $83,449
• Unemployment Rate: 8%

*All New Hampshire housing market statistics are as of Q3 2023.

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How To Flip Houses In New Hampshire (7 Steps)

Flipping New Hampshire real estate becomes a lot easier when investors follow these seven steps:

1. Find A House-Flipping Mentor
2. Research The Local Housing Market
3. Find & Analyze Distressed Properties
4. Raise Capital To Fund The Deal
5. Close On The House
6. Renovate The Property
7. Resell The House

1. Find A House-Flipping Mentor

Securing a seasoned house-flipping mentor should be at the forefront of every aspiring investor's journey to learn how to flip houses in New Hampshire. With its ability to mitigate risks, enhance efficiency, and cultivate a habit of success, mentorship is a powerful catalyst for growth.

The insights gained from a mentor's experience extend beyond mere strategies and tactics; they encompass the intangibles that foster confidence, deliberate decision-making, and the swift attainment of success. A mentor's guidance doesn't just direct flips—it fast-tracks investors toward a thriving investment career.

While some mentors may require compensation for their guidance, consider it an investment that holds the potential to yield exponential returns. The wisdom gained and pitfalls avoided under a mentor's guidance can significantly outweigh the upfront costs, setting investors on an accelerated path to success.

Ready to start house-flipping in New Hampshire? Join Alex Martinez at his FREE training to learn how to get started with house-flipping and wholesaling!

2. Research The Local Housing Market

In this section, we'll dive into the best places for investors to research the intricacies of the New Hampshire real estate market, empowering them to make the best decisions possible. Whether a novice or a seasoned investor, these resources will prove invaluable:

• Zillow Housing Data Research
• Zillow’s New Hampshire Market Overview
• Redfin’s New Hampshire Housing Market Overview
• Realtor.com’s New Hampshire Market Overview
• Realtor.com’s Residential Data Library
• New Hampshire Association of Realtors
• ATTOM Data Solutions’ New Hampshire Real Estate & Property Data
• SoFi’s State Foreclosure Data
• U.S. Census Bureau’s New Hampshire Data
• Bureau Of Labor Statistics’ New Hampshire Economic Data
• New Hampshire Real Estate Commission
• Federal Reserve Bank of St. Louis’ New Hampshire Data

3. Find & Analyze Distressed Properties

Strategic property selection is critical when learning how to flip houses in New Hampshire. It's not just about buying any property – successful investors target distressed properties, often owned by motivated sellers looking for a way out. However, investors will want to adhere to the golden rule: buy low to ensure their investment is worthwhile. This is where the renowned "70% rule" comes into play, an invaluable tool for determining the maximum allowable offer (MAO) on a distressed property.

The 70% rule is a simple yet powerful guideline. It dictates that an investor should not pay more than 70% of the property's after-repair value (ARV) minus the estimated repair costs. This approach leaves a buffer for potential unforeseen expenses and ensures investors buy at a price that leaves room for profits. In its simplest form, the 70% rule safeguards against overpaying, a pitfall many house flippers encounter.

Here is the formula:

ARV - Fixed Cost - Rehab Costs - Desired Profit = Maximum Allowable Offer (MAO)

By applying the 70% rule, investors are setting themselves up for success in a competitive real estate market. It allows investors to make strategic offers that increase their chances of securing a distressed property at a favorable price point; this helps avoid potential losses and maximizes potential profits when it's time to sell the renovated property.

Read Also: Free ARV Calculator: After Repair Value Calculation

4. Raise Capital To Fund The Deal

Securing adequate capital is essential in learning how to flip houses in New Hampshire. While it might be tempting to dip into their savings, investors need to consider the bigger picture. Using personal funds can limit scalability and potentially risk the investor’s financial security. To avoid these pitfalls, savvy investors often turn to alternative funding sources that allow them to keep their finances intact.

Hard and private money lenders are among the most popular options for raising capital. While these avenues may have higher interest rates than traditional loans, the benefits often outweigh the costs.

Hard money loans can provide quick access to cash, which is essential in a competitive market where speed can make all the difference. Private money lenders could be friends, family members, or others with excess capital they are willing to invest.

Choosing between hard money and private money lenders depends on the investor’s circumstances and risk tolerance. While the interest rates might seem daunting, the speed and convenience they offer can be instrumental in helping secure properties swiftly and efficiently. Remember, in the fast-paced world of house flipping, having cash on hand can give investors a distinct advantage in acquiring investment opportunities.

5. Close On The House

Closing on a house in New Hampshire involves several comprehensive steps. As an attorney state, however, New Hampshire mandates that a qualified legal professional oversees the entire process, ensuring the legality and accuracy of the transaction.

Here's an overview of the typical steps investors can expect when closing on a house in New Hampshire:

• Sales Agreement: The process begins with a signed sales agreement between the buyer and the seller. This document outlines the terms and conditions of the sale, including the purchase price, contingencies, and closing date.
• Title Search & Examination: A title company or attorney will ensure the property's title is clear and free from liens or encumbrances.
• Inspections & Contingencies: The buyer may have a period to conduct checks and negotiate repairs based on the findings before closing, including a home inspection, termite inspection, and other relevant assessments.
• Mortgage Approval: If the buyer obtains financing, they must secure a mortgage from a lender. The lender will require an appraisal of the property to determine its value.
• Final Walk-Through: The buyer typically conducts a final walk-through of the property to ensure it is in the agreed-upon condition and any negotiated repairs have been completed.
• Closing Meeting: The closing meeting is held with all parties involved, including the buyer, seller, real estate agents, and legal professionals. All necessary documents, including the deed, mortgage note, and various settlement statements, are signed during this meeting.
• Funds Transfer: The buyer provides the necessary funds for the purchase, including the down payment and closing costs. These funds are typically wired to an escrow account.
• Recordation: After the meeting, the deed and other relevant documents are recorded at the Recorder's Office in the county where the property is located.
• Possession & Key Exchange: Once the transaction is complete and the funds have been disbursed, control of the property is transferred to the buyer; this usually coincides with the key exchange.

6. Renovate The Property

The renovation phase is a pivotal moment that has the potential to maximize profits. With that in mind, one of the fundamental goals during this phase is to enhance the property's appeal to potential buyers. By strategically upgrading the home, investors can create a sense of demand that resonates with prospective buyers, potentially sparking competitive interest and even driving bidding wars.

However, investors must approach rehab costs with a calculated strategy. Not all upgrades yield equal returns, and prioritizing projects with a high return on investment (ROI) is paramount. According to Remodeling Magazine, the renovations that return the most money to investors in New Hampshire (and the rest of the New England region of the United States) are:

• Electric HVAC Conversion: Recoups 113.2% of the original cost
• Fiber-Cement Siding Replacement: Recoups 101.2% of the original cost
• Manufactured Stone Veneer: Recoups 94.7% of the original cost
• Vinyl Siding Replacement: Recoups 89.0% of the original cost
• Minor Midrange Kitchen Remodel: Recoups 83.8% of the original cost

Read Also: Estimating Rehab Costs: A 5-Step Guide For Real Estate Investors

7. Resell The House

Last but certainly not least, investors must resell the house. It is worth noting, however, that it’s not enough to sell the house simply; it must be sold fast. Swiftly transitioning the property from the rehabbed phase to the hands of a new owner is vital to avoid lingering holding costs, which can erode potential profits. Speed is of the essence, and the key to a rapid sale lies in effective presentation and expert guidance.

Staging the property is pivotal in achieving a quick and seamless sale. Staging allows potential buyers to envision living in the space, fostering a connection and driving a sense of urgency. Thoughtful furniture, decor, and lighting arrangements can transform a house into a desirable home, significantly shortening the time it spends on the market.

Enlisting the expertise of a seasoned real estate agent or Realtor in New Hampshire is also a strategic move that can pay dividends. These professionals know about the local market dynamics, pricing trends, and buyer preferences. Their negotiation skills and comprehensive marketing strategies can attract a wider pool of qualified buyers, increasing the likelihood of securing a swift and lucrative sale.

There are several strategies investors can implement to sell a home in New Hampshire. That said, the only strategies that matter are those that sell the house quickly and for more money than the investor has put into it.

How To Find Houses To Flip In New Hampshire

Here are ways new investors can find houses to flip in New Hampshire:

• Real Estate Listings: Scour local real estate listings on the MLS for homes on the market for extended periods.
• Foreclosure Auctions: Attend foreclosure auctions to bid on properties with potential.
• Wholesalers: Network with wholesalers who specialize in finding distressed properties.
• Direct Mail Campaigns: Send targeted mail to homeowners facing foreclosure or financial distress.
• Online Real Estate Platforms: Utilize online platforms like Zillow, Redfin, or Realtor.com to find properties.
• Networking Events: Attend local real estate networking events to connect with potential sellers.
• Drive For Dollars: Drive through neighborhoods, looking for vacant or distressed properties.
• Bandit Signs: Place "We Buy Houses" signs strategically to attract motivated sellers.
• Real Estate Agents: Collaborate with real estate agents with insight into off-market properties.
• Probate Listings: Explore probate listings for properties being sold due to inheritance.
• Social Media: Utilize social media platforms to reach out to homeowners considering selling.
• Online Auctions: Participate in online property auctions to find potential flipping opportunities.
• Property Tax Delinquencies: Research properties facing tax delinquencies or liens.
• Local Newspapers: Check local newspapers for properties being sold directly by owners.
• Networking Groups: Join local real estate investing groups to connect with potential sellers.

Read Also: Finding Motivated Seller Leads: Free & Paid Tactics

Do You Need A License To Flip Houses In New Hampshire?

Aspiring house flippers are not required to hold a real estate license in New Hampshire.

While obtaining a real estate license is an option, it involves undergoing extensive coursework, adhering to regulatory requirements, and incurring associated fees. Investors can choose whether or not to pursue a license based on their goals.

Read Also: How To Get MLS Access: The (Ultimate) Guide

How To Flip A House In New Hampshire With No Money?

Flipping houses in New Hampshire without your own funds is achievable, enabling a wider range of individuals to enter the real estate investment arena. The key lies in leveraging the resources offered by private and hard money lenders. These lenders provide financial backing for your house-flipping projects, focusing primarily on the property's potential rather than your credit score, making the process more accessible and democratized. By collaborating with these lenders, investors can access the necessary capital to purchase, renovate, and sell properties for a profit.

Furthermore, another option for those who haven’t yet learned how to flip houses in New Hampshire is to break into wholesaling. Wholesaling connects motivated sellers with prospective buyers, effectively acting as an intermediary. This approach doesn't demand any upfront capital investment, as you're essentially facilitating the transaction between parties and earning a fee. This strategic pathway enables novice investors to enter the real estate world without financial barriers.

Best Cities To Flip Houses In New Hampshire

The best cities to learn how to flip houses in New Hampshire include, but are not limited to:

• Manchester: Catering to home buyers in Manchester (just north of Derry) could prove lucrative for house flippers. The right investment property at a reasonable market value could result in significant profits in this city that has seen demand increase over the years.
• Concord: Whether multi-family homes or rental properties, investors will like a lot the Concord market has to offer. In particular, the price is right, with a median home value well below the state average. About an hour’s drive west of Portsmouth, Concord is gaining a lot of attention.
• Nashua: has seen demand for housing increase as unemployment remains relatively low. This unique combination creates plenty of opportunities for investors in Nashua.

Final Thoughts On Flipping Homes In New Hampshire

Aspiring New Hampshire investors can confidently flip houses with the seven steps outlined above. Individuals can enhance their chances of success in this lucrative field by understanding the intricacies of each stage – from finding distressed properties to raising capital, executing renovations, and ultimately reselling homes. By learning how to flip houses in New Hampshire, investors can navigate the challenges and complexities of rehabbing, eventually turning properties into profit.

Are you eager to learn how to flip houses in New Hampshire? Don't navigate the complexities of the real estate market alone. Reach out to Real Estate Skills today for expert guidance and support. Our experienced team will provide the knowledge and tools you need to flip houses successfully in New Hampshire. Contact us now to embark on your flipping journey with confidence and purpose.