Some condos in New Hampshire can look great on paper but still be ineligible for conventional financing. This is especially common in resort towns like North Conway, Bartlett, or Lincoln, where many condo complexes are structured more like hotels than traditional residential buildings.

One of the most common examples is condos with on-site rental management. These properties often have a central front desk, daily or weekly rentals, and housekeeping services—essentially functioning like a condotel. Because they operate more like a hotel, Fannie Mae and Freddie Mac classify them as higher risk and won’t back conventional loans on them. Buyers for these properties usually need to pay cash or use a portfolio or commercial loan, which often comes with higher rates and larger down payments.

Another situation that raises a red flag is when one person or company owns too many units in the complex. If a single entity owns more than 25% of the total units, most lenders won’t approve conventional financing. This is because if that owner stops paying association fees or influences management decisions, it could impact the financial health of the entire association.

New or incomplete developments can also be an issue. If the project is still under construction or the developer hasn’t handed over control to the condo association, conventional lenders generally won’t approve financing until it’s considered “complete” and “warrantable.”

Lenders also look at owner-occupancy ratios. If too many units are rented out—especially for short-term or Airbnb-style stays—it can push the project into “non-warrantable” territory. Most lenders want at least half the units to be owner-occupied before offering conventional loans.

Finally, financial or legal issues within the condo association can disqualify a property. If the association has large unpaid fees, pending lawsuits, or low reserve funds, lenders may see it as too risky.

If you love a condo that doesn’t qualify for conventional financing, there are still options. Local banks may offer portfolio loans, some lenders might approve financing with a larger down payment, or you could consider a cash purchase if it makes sense for your goals.

The bottom line is that not all condos are treated equally when it comes to financing. In the Mount Washington Valley area, where many properties serve as both vacation homes and short-term rentals, it’s especially important to work with an agent and lender who understand how these unique setups affect loan eligibility. Sometimes, a “cash only” listing isn’t a dead end—it’s just a different kind of opportunity.

Why Most North Conway Rentals Don’t Cash Flow

This is not going to be a popular opinion—but I’d rather be honest up front.

A lot of buyers come into the North Conway market thinking they can buy a vacation home, finance 80% of it, and let rental income cover the mortgage and expenses. While it sounds like the perfect plan, the reality is that in 95% of cases, the numbers simply don’t work out that way.

Looking at the Numbers

Here are real projections from recent local properties:

• $400,000 home: With a mortgage, taxes, utilities, and fees, annual expenses are about $36,000. At average occupancy (around 40%), it brings in $27,000 in rent. That’s a $9,000 shortfall each year

• $570,000 home: Expenses run over $45,000. Rental income ranges from $28,000 to $38,000, leaving you $7,000–$16,000 in the red most years

• $465,000 condo: Annual expenses top $41,000. Rental income comes in between $23,000 and $33,000, meaning you’re still losing money in almost every scenario

Only in the absolute best-case situations (high occupancy and high nightly rates) do these properties even approach break-even—and that doesn’t account for repairs or unexpected costs.

Why They Don’t Work as Cash Flow Properties

There are a few simple reasons why these homes rarely cash flow:

• Occupancy averages just 40%. Yes, it’s busy on ski weekends and during foliage season, but there are plenty of slow months.

• The market is saturated. With hundreds of rentals to choose from, guests shop by price, keeping revenue in check.

• Expenses are higher than expected. Heating, HOA fees, internet, management companies, and utilities add up fast.

A Better Way to Think About It

Buying a rental property in North Conway makes sense if you approach it as a lifestyle investment, not a pure income property. It works best for buyers who want:

• A vacation home they’ll enjoy personally,

• Supplemental income to offset taxes, utilities, and upgrades,

• Long-term appreciation instead of immediate cash flow.

If you’re looking for a property that pays for itself and puts money in your pocket every month, this market probably isn’t for you. But if you want a place to enjoy that helps offset its own costs, it can be a great decision.

North Conway rentals aren’t “get-rich” properties. They’re vacation homes first, with the benefit of rental income to soften the financial load. Go in with the right expectations, and you’ll love owning here. Go in expecting cash flow, and you’ll likely be disappointed.

 

 

 

 

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If you own or manage a short-term rental (STR) in Conway, NH, there's an important update you’ll want to be aware of. The town just released a new draft checklist outlining the minimum safety and housing standards required for licensing STR properties.  Here is a link to the town website (scroll down to Rental Certificate Program)

This checklist, dated May 12, 2025, is part of Conway’s ongoing effort to ensure STRs are safe for guests and compliant with local and state regulations. Whether you're actively renting or planning to, here’s a quick breakdown of what’s required:

🔑 Key Highlights from the Checklist:

1. Visible Street Address
   Your property must have address numbers clearly visible from the road—minimum 4" tall with good contrast.

2. Smoke & CO Detectors
   Interconnected smoke alarms with battery backup must be in every sleeping area and level. Carbon monoxide detectors are also required on each level.

3. Safe Egress
   Every bedroom needs two ways out—usually a door and a window (no more than 20 feet above ground).

4. Heating & Appliances
   Gas heating systems must be serviced within the past 12 months. Wood stoves and chimneys must meet NFPA 211 standards.

5. Electrical & Fire Safety
   The electrical system must comply with national fire codes (NFPA 70), and a properly maintained fire extinguisher must be on-site.

6. Outdoor Fire & Cooking Equipment
   Fire pits must follow RSA 227-L and require a burn permit. Grills and smokers must be on the ground only—no decks or porches.

7. Meals & Rentals License
   If required, your Meals and Rentals license must be valid and displayed at the property.

8. Older Septic Systems
   If your septic system is more than 10 years old, it must be inspected and shown to meet state standards.

9. General Housing Condition
   Properties must meet minimum housing maintenance standards (RSA 48-A) and cannot be a nuisance to neighbors.

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Why It Matters

This checklist isn’t just about compliance—it’s about guest safety and community trust. Meeting these standards helps avoid fines, delays in licensing, and potential liability if something goes wrong.  There is a timeline for this program on the town website as well.

Need help making sure your STR checks all the boxes? I offer free safety inspections for local short-term rentals—just reach out and I’ll walk you through it.

 

Check out my North Conway Buyer's Guide

 

What is Radon? A Quick Guide for Home Buyers in New Hampshire & Maine

If you're buying a home in New Hampshire or Maine, you’ve probably heard the term radon tossed around during the inspection process. It’s something that comes up often in our area—and for good reason.

Let’s break down what radon is, why it matters, and how you can handle it if you find high levels in a home you love.

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So, What is Radon?

Radon is a naturally occurring radioactive gas that forms when uranium in soil, rock, and water breaks down. It’s colorless, odorless, and tasteless—so you won’t know it's there unless you test for it.

The big concern? Long-term exposure to high levels of radon is the second leading cause of lung cancer in the U.S., right behind smoking. That’s why it’s a serious topic when buying a home.

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Why is Radon a Big Deal Around Here?

Radon is common across the country, but parts of New Hampshire and Maine—especially areas with a lot of granite in the ground—tend to have higher levels. I see elevated radon readings come up frequently during home inspections, and it doesn’t mean the house is flawed—it just means it needs a fix.

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How Do You Test for Radon?

Testing is simple and affordable. You can go with either:

• Short-Term Test: Usually takes 2–4 days. This is the most common test during a real estate transaction. It's often done with a charcoal canister or a continuous monitor set up by a home inspector.

• Long-Term Test: These take 90 days or longer and give a better average over time. These are great for after you move in if you want a fuller picture.

The results are measured in picocuries per liter of air (pCi/L). The EPA recommends fixing radon issues if levels are 4.0 pCi/L or higher.

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What Happens if the Radon Levels Are Elevated?

Good news—radon is very fixable.

The most common solution is a radon mitigation system. This usually involves:

• A PVC pipe system installed in the basement or crawl space.

• A fan that draws the radon gas from beneath the foundation and vents it safely outside, usually above the roofline.

These systems are typically $1,000–$1,500 and can often be installed in a day. Once installed, they can reduce radon levels by up to 99%.

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Should You Walk Away From a Home With Radon?

Not at all. Radon is extremely common, and mitigation systems are straightforward and effective. If you find a home you love, and the radon test comes back high, it’s totally reasonable to ask the seller to install a mitigation system—or to negotiate that into the deal.

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Final Thoughts

If you’re house hunting in NH or ME, make sure radon testing is part of your inspection process. It’s one of those behind-the-scenes health and safety items that’s easy to overlook but very important in the long run.

Have questions about radon, home inspections, or anything else as you navigate the buying process? I’m always happy to help.

– Dave from North Conway Realty

 

 

 

 

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If you have ever wondered how a home’s bedroom count is determined, you’re not alone. The question of "how many bedrooms does this house have?" can sometimes feel like a mystery—one that even buyers, brokers, and appraisers struggle to answer consistently. With multiple “sources of truth” and occasional discrepancies among them, understanding the true bedroom count of a home can be a challenge.

The Sources of Truth

When determining the number of bedrooms in a home, there are typically three main sources to consider:

1. The State-Approved Septic Design
   If the home is on a septic system, the septic design will specify the number of bedrooms it is approved to support. This is not just a guideline—it’s a legal limitation based on the septic system's capacity. For instance, a two-bedroom septic system is designed to handle the wastewater produced by a two-bedroom household, regardless of how many rooms the home might have that could technically function as bedrooms.  To me this was always the ultimate source of bedroom count.
2. The Town Tax Card
   The local tax assessor’s office maintains records on each property, including the number of bedrooms. These tax cards are often used by real estate professionals and appraisers, but they can contain errors or outdated information.
3. The Construction of the Home
   This refers to how the home is physically built and whether rooms meet the legal definition of a bedroom. For example, a bedroom typically needs adequate square footage, a closet (in most areas), and proper egress (a window or door large enough for escape in an emergency). Even if a room is labeled a bedroom on the tax card or supported by the septic system, it won’t count (to some) if it lacks legal egress.

Examples of Confusion

Discrepancies can arise when these sources don’t align, leaving buyers and professionals scratching their heads. Here are two common scenarios:

1. Septic Design vs. Tax Card
   A home’s septic design might specify two bedrooms, but the town tax card lists three. In this case, the home’s wastewater system is only approved for two bedrooms, and advertising it as a three-bedroom property could mislead buyers or violate local regulations.  The MLS does not require that homes are advertised by the septic design so if a tax card has a higher bedroom count it’s not necessarily a violation for the agent to use that.
2. Septic Design and Tax Card vs. Construction
   Both the septic design and tax card might list three bedrooms, but one of those rooms lacks legal egress. Without proper escape routes, it cannot be considered a bedroom, no matter what the paperwork says but the North Conway area has a ton of bedrooms that do not have proper egress so that is definitely not taken into consideration when determining bedroom count.

So, Who’s Right?

The short answer is: it depends. There’s no universally agreed-upon standard for which source takes precedence. In a recent meeting with local designated brokers, I heard a lot of discussion on this topic, and while there’s general agreement on best practices, there’s no set rule. This makes it crucial for buyers to ask questions about how the bedroom count was determined when evaluating a property.

What Should Buyers Do?

If you’re serious about a property and the bedroom count seems unclear, here are a few tips:

1. Ask Your Broker for Clarity
   A good broker will dig into the details for you, reviewing the septic design, tax card, and the home’s construction to provide a clear explanation.  At least if there is a discrepancy, you will understand it.
2. Request Documentation
   Ask to see the septic design and verify the number of approved bedrooms. Also, review the town tax card and confirm that all listed bedrooms meet legal requirements.

Why Does It Matter?

The bedroom count can affect everything from property value and taxes to how comfortably you can live in the home. If you plan to rent the home, it can impact how you advertise the house and in some cases, if you can get a rental permit for the home.  It’s also a key consideration for future resale. A home that’s inaccurately listed as having more bedrooms than it legally supports could create problems down the line—for you or for the next buyer.  

Final Thoughts

When it comes to bedrooms, the numbers don’t always add up neatly. By understanding the different sources of truth and asking the right questions, you can avoid surprises and make a more informed decision. And remember, it’s always okay to ask your broker, “How did you determine the bedroom count?” It’s their job to help you navigate the confusion and find the right home for you.

If you’re looking at properties in the North Conway area and want expert advice on navigating tricky details like this, I’d be happy to help! Feel free to reach out any time.

In NH, we typically use a purchase & sale agreement as the first step of an offer.  That differs from MA where the Letter of Intent or Offer to Purchase start the process.  Here are some of the basics of the NH Purchase & Sale Agreement.  

Here's an expanded version of each section of the New Hampshire Purchase & Sale Agreement (P&S), along with examples to illustrate how they work in real-life scenarios:

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1. Parties Involved (Section 1)

This section identifies the buyer and seller, including their names and addresses. Both parties are agreeing to be part of this transaction. For example, John Doe, a buyer, and Sarah Smith, the seller, are entering a legally binding agreement where John will purchase Sarah’s property.

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2. Property Information (Section 2)

This section specifies the location and legal description of the property being sold. It ensures both parties are on the same page about what is being bought and sold. For example, John is buying a single-family home at 123 Main Street, Conway, NH. The legal description helps avoid any confusion about which property is involved, especially if it shares a lot or boundary with another.

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3. Purchase Price and Deposit (Section 3)

This outlines the purchase price and earnest money deposit required. It breaks down the timeline for the buyer to submit the deposit, typically held in escrow. For instance, if John agrees to buy Sarah’s house for $350,000, he may provide a $5,000 earnest money deposit to show he’s serious. This deposit is held by the real estate firm until closing.

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4. Deed and Title (Sections 4 and 9)

This section discusses the type of deed the seller will provide, typically a marketable title free of encumbrances. It also outlines the title examination process. For example, when John buys Sarah’s house, the title company will ensure there are no outstanding liens or claims on the property, like unpaid taxes, before the transaction can be completed.

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5. Transfer of Title and Closing Date (Sections 5 and 6)

This defines when the title will transfer to the buyer and the agreed-upon closing date. It also confirms that full possession of the property will be transferred to the buyer at closing. John might agree to close on Sarah’s property on December 15th, and by that date, Sarah must vacate the home, leaving it in "broom clean" condition for John.

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6. Representation and Dual Agency (Section 7)

This section clarifies whether the buyer and seller are each represented by their own agent or if a dual agent represents both. For example, if Sarah’s agent is also representing John in the transaction, both must agree to dual agency to avoid any potential conflicts of interest.

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7. Insurance (Section 8)

The seller is required to maintain insurance on the property until the sale is finalized. If a fire or flood happens before closing, the insurance payout can either repair the damage or allow the buyer to back out. For example, if Sarah’s house suffers fire damage a week before closing, John could either accept the insurance payout or walk away from the deal and get his deposit back.

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8. Prorations (Section 10)

This section handles the proration of taxes, utilities, and other property-related costs. It ensures the buyer and seller pay their fair share of expenses up to the closing date. For example, if closing happens halfway through the year, Sarah will pay property taxes for her time in the home, and John will cover the remainder of the year.

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9. Property Inclusions and Disclosures (Sections 11 and 13)

Here, the agreement specifies what fixtures and personal property are included in the sale, such as appliances or built-in shelving. It also notes the receipt of property disclosures. For example, Sarah agrees to include the refrigerator and washer/dryer in the sale, and John has already reviewed the disclosure about the 10-year-old roof.

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10. Radon, Arsenic, and Lead Paint (Section 12)

This section explains the risks and testing options for radon gas, arsenic, and lead paint. Buyers are encouraged to test for these hazards. For example, if John is buying an older home, he might order a lead paint test to ensure it’s safe for his young children.

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11. Inspections and Contingencies (Section 14)

The buyer can conduct various inspections, such as for the home’s condition, pests, water quality, or radon levels. If issues arise, the buyer can negotiate repairs or cancel the deal. For instance, if John’s home inspector finds a leaking roof, John could ask Sarah to repair it before closing or adjust the sale price.

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12. Due Diligence (Section 15)

The buyer has the right to review any easements, restrictions, or condo documents. If anything is unsatisfactory, they can terminate the agreement. For example, if John learns through due diligence that Sarah’s property is subject to a restrictive covenant prohibiting fences (but John wants to install one), he could back out of the deal.

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13. Financing and Financing Contingency (Section 18)

This section outlines whether the agreement is contingent on financing, meaning the buyer must secure a loan for the purchase. If John can't obtain a mortgage by a specific date, he can back out of the deal without losing his deposit. However, if John doesn’t inform Sarah in time, he risks forfeiting his deposit.

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14. Wire Fraud Alert

This section warns about the increasing risk of wire fraud during real estate transactions. For example, before John wires his down payment to Sarah’s escrow agent, he must call the office to verify the bank account details, ensuring it’s not a scam.

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15. Additional Provisions and Addenda (Sections 19 and 20)

This section includes any extra provisions or addenda that are part of the deal. For example, if John and Sarah agree on additional items like a home warranty or specific repair obligations, they’ll be noted here.

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16. Choice of Law and Venue (Section 21)

This clarifies that any legal disputes will be governed by New Hampshire law, and any lawsuits will be handled in New Hampshire courts.

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17. Effective Date and Notice (Section 22)

The effective date is the date when the last party signs the contract and communicates that to the other party. All deadlines in the agreement are counted from this date. For example, if Sarah signs on November 1st and John signs on November 2nd, the effective date is November 2nd, and any deadlines (such as inspection periods or financing) are counted from there.

What is the RSPS Designation?

The RSPS designation is given to real estate professionals who have completed a specialized course covering the nuances and specifics of buying and selling resort and second-home properties. It includes training on topics such as tax implications, investment strategies, and the lifestyle factors that are unique to the resort and second-home market. This designation is a testament to a broker's commitment to understanding and excelling in this niche area of real estate.

How Dave's RSPS Designation Benefits Second Home Buyers

Expert Knowledge of Market Trends

With the RSPS designation, Dave has deepened his knowledge of the market trends specific to resort and second homes. This expertise allows him to provide invaluable insights to buyers about the best times to buy and sell in the North Conway area, ensuring that clients make the most informed decisions.

Specialized Guidance on Tax and Investment Strategies

Second homes and resort properties come with their own set of financial implications, including tax considerations and investment opportunities. Dave's training enables him to offer specialized guidance on how to navigate these complexities, helping buyers to optimize their investment and enjoy the lifestyle benefits of owning a second home.

Local Insights and Connections

North Conway is known for its beautiful landscapes and vibrant community, making it a popular choice for second-home buyers. Dave's local expertise and professional connections, enhanced by his RSPS designation, mean that buyers have access to the most comprehensive information on local amenities, community events, and other lifestyle factors that are crucial when choosing a second home.

Personalized Service

Understanding that buying a second home is about more than just a financial investment, Dave leverages his RSPS training to focus on the lifestyle aspirations of his clients. Whether it's a cozy ski chalet close to Mount Washington Valley ski resorts or a serene retreat by the Saco River, Dave is equipped to match every client with the perfect property that suits their dreams and lifestyle needs.