177 Main St #2

Newmarket, NH 03857

$365,000F

4 bd · 1.0 ba · 704 sqft · Built 1900 · Condo · Active · 106 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,470/mo
• Mortgage (P&I): −$1,914
• Tax + insurance: −$540
• HOA: −$225
• Vac / Maint / Mgmt: −$519
• Net cashflow: $-728/mo
• Annual: $-8,735/yr
• Cap rate: 4.08%
• Cash-on-cash: -7.89%
• DSCR: 0.65
• 1% rule: 0.68%
• Cash to close: $102,200

Investor read

• This is a 4-bed/1.0-bath condo listed at $365k.
• At list price, monthly cash flow is $-728 ($-9k/yr) — negative.
• To cash-flow at today's rent, offer at most $236k (35.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $247k (32.3% below list).
• It's been on market 106 days — a 9% lower offer ($332k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $236k (35.2% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $11k of value loss. Plan a longer hold.
• Location reads 86/100 on livability (#6 in NH, #368 nationally) — a professional / high-income tenant draw. Strengths: crime A+, commute A+, housing A+; Watch: amenities F.
• Newmarket School District (suburban): math 39% / reading 59% proficiency, ranked #37 of 98 in NH (top 38%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 18% free/reduced lunch — higher-income household profile.
• Watch-outs: flood insurance adds $56/mo; built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 37 active listings in the ZIP; solid renter incomes; 1,276 units permitted in Rockingham County in 2024 (593 in 5+ unit buildings).
• 5 sale attempts since 20y ago; this cycle's ask has dropped $24k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $112k; list at $365k implies a 226% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: severe flood risk; major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.1% vs local median 1.5% in Newmarket — 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.

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?
• It's been on market 106 days. Have you received any prior offers? Is the seller open to a 35% concession, seller financing, or rate buy-down credit?
• Built in 1900 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.