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.