2 Shingle Mill Rd

Hudson, NH 03051

$750,000D

6 bd · 3.0 ba · 2,736 sqft · Built 1980 · MultiFamily · Active · 1 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,061/mo
• Mortgage (P&I): −$3,933
• Tax + insurance: −$949
• HOA: −$0
• Vac / Maint / Mgmt: −$1,273
• Net cashflow: $-94/mo
• Annual: $-1,132/yr
• Cap rate: 6.14%
• Cash-on-cash: -0.54%
• DSCR: 0.98
• 1% rule: 0.81%
• Cash to close: $210,000

Investor read

• This is a 2 × 3.0-bed/1.5-bath units multifamily listed at $750k.
• At list price, monthly cash flow is $-94 ($-1k/yr) — negative. Per door: $-47/mo.
• To cash-flow at today's rent, offer at most $733k (2.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $606k (19.2% below list).
• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $606k (19.2% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $22k of value loss. Plan a longer hold.
• Location reads 84/100 on livability (#9 in NH, #787 nationally) — a professional / high-income tenant draw. Strengths: crime A+, housing A+, health & safety A+; Watch: commute F.
• Hudson School District (suburban): math 38% / reading 50% proficiency, ranked #48 of 98 in NH (top 49%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 13% free/reduced lunch — higher-income household profile.
• Zoned schools: Hills Garrison Elementary School (math 55% / reading 58%, grade C+, #59 of 263 statewide, top 22%, 383 students, 19% FRL).
• Zoned-school proficiency averages 56% at this address vs 44% district-wide (+12 pts) — the actual schools serving this property are materially stronger than the Hudson School District average implies; a family-tenant draw the district grade alone would hide.
• Market conditions: 78 active listings in the ZIP; high-income renter base; 981 units permitted in Hillsborough County in 2024 (381 in 5+ unit buildings).
• Hillsborough County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• Climate carrying-cost: moderate wind risk, 26% chance of damaging wind over 30y — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.1% vs local median 3.0% in Hudson — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.
• At $6,061/mo this rent would consume 59% of the median local household income ($124k/yr) (locally 238% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• 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?
• 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.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
• How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.