38 Somersworth Portfolio Unit Somersworth

Somersworth, NH 03878

$6,600,000C

None bd · None ba · 35,785 sqft · Built 1824 · MultiFamily · Active · 9 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $74,988/mo
• Mortgage (P&I): −$34,611
• Tax + insurance: −$11,000
• HOA: −$0
• Vac / Maint / Mgmt: −$15,747
• Net cashflow: $13,629/mo
• Annual: $163,553/yr
• Cap rate: 8.77%
• Cash-on-cash: 8.85%
• DSCR: 1.39
• 1% rule: 1.14%
• Cash to close: $1,848,000

Investor read

• This is a multifamily listed at $6.60M. Condition is rated fair.
• At list price, monthly cash flow is $14k ($164k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($75k rent vs $6.60M).
• Only 9 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $46k of loan paydown is wiped out by about $198k of value loss. Plan a longer hold.
• Location reads 80/100 on livability (#17 in NH, #1,853 nationally) — a professional / high-income tenant draw. Strengths: commute A+, housing A+, health & safety A+; Watch: amenities F.
• Somersworth School District (suburban): math 16% / reading 30% proficiency, ranked #93 of 98 in NH (top 95%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Watch-outs: built in 1824 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 46 active listings in the ZIP; solid renter incomes; 951 units permitted in Strafford County in 2024 (551 in 5+ unit buildings).
• Strafford County population projected at +7% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Cap rate 8.8% vs local median 3.5% in Somersworth — 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 $74,988/mo this rent would consume 1198% of the median local household income ($75k/yr) (locally 560% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1824 — 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.
• 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.

Repairs flagged (vision-AI assessment)

• Minor: Kitchen cabinets — Cabinets show signs of wear.
• Minor: Bathroom fixtures — Fixtures appear outdated.
• Moderate: Exterior siding — Siding shows signs of wear and needs repainting.
• Moderate: Carpeted flooring — Floors need replacement or refinishing.
• Moderate: Paint — Paint needs touch-up or repainting.
• Moderate: HVAC system — System may need maintenance or replacement.