429 Bow Lake Rd

Northwood, NH 03261

$434,900D-

3 bd · 1.0 ba · 1,260 sqft · Built 1950 · Other · Active · 26 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,500/mo
• Mortgage (P&I): −$2,281
• Tax + insurance: −$518
• HOA: −$0
• Vac / Maint / Mgmt: −$735
• Net cashflow: $-33/mo
• Annual: $-399/yr
• Cap rate: 6.20%
• Cash-on-cash: -0.33%
• DSCR: 0.99
• 1% rule: 0.80%
• Cash to close: $121,772

Investor read

• This is a 3-bed/1.0-bath other listed at $435k.
• At list price, monthly cash flow is $-33 ($-399/yr) — negative.
• To cash-flow at today's rent, offer at most $429k (1.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $350k (19.5% below list).
• It's been on market 26 days — a 2% lower offer ($428k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $350k (19.5% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $13k of value loss. Plan a longer hold.
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• Northwood School District (rural): math 51% / reading 60% proficiency, ranked #65 of 171 in NH (top 38%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 15% free/reduced lunch — higher-income household profile.
• Zoned schools: Northwood Elementary School (math 42% / reading 52%, grade D-, #114 of 263 statewide, top 46%, 388 students, 16% FRL) — zoned schools at 16% FRL track the district average.
• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 42 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 1,276 units permitted in Rockingham County in 2024 (593 in 5+ unit buildings).
• 4 sale attempts since 26y ago; this cycle's ask has dropped $55k (11%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $135k; list at $435k implies a 222% gain — meaningful room to come down on a strong offer.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• Built in 1950 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• This sits on a lake — are riparian / water-frontage rights deeded with the parcel? Any dock permits, shoreline easements, or HOA water-use restrictions?
• What's the documented flood / surge / shoreline-erosion history here (FEMA AND non-FEMA — e.g., storm surge, creek backup, septic-field saturation)?
• Any water-quality or seasonal algae-bloom issues that affect tenant satisfaction or short-term-rental demand?
• What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.