531 Ocean Blvd

Hampton Beach, NH 03842

$799,900B

6 bd · 4.0 ba · 2,285 sqft · Built 1900 · MultiFamily · Active · 18 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $10,900/mo
• Mortgage (P&I): −$4,195
• Tax + insurance: −$1,555
• HOA: −$0
• Vac / Maint / Mgmt: −$2,289
• Net cashflow: $2,862/mo
• Annual: $34,340/yr
• Cap rate: 11.23%
• Cash-on-cash: 17.62%
• DSCR: 1.78
• 1% rule: 1.36%
• Cash to close: $223,972

Investor read

• This is a 4 × 6-bed/4.0-bath units multifamily listed at $800k.
• At list price, monthly cash flow is $3k ($34k/yr) — positive. Per door: $715/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($11k rent vs $800k).
• It's been on market 18 days — a 2% lower offer ($788k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $788k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $6k of loan paydown is wiped out by about $24k of value loss. Plan a longer hold.
• Location reads 70/100 on livability (#48 in NH) — a middle-class / working-renter tenant base. Strengths: crime A+, health & safety A+, employment B+; Watch: amenities F, commute D-, cost of living F.
• Hampton School District (suburban): math 49% / reading 66% proficiency, ranked #19 of 98 in NH (top 19%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 15% free/reduced lunch — higher-income household profile.
• Zoned schools: Adeline C. Marston School (math 59% / reading 66%, grade B, #31 of 263 statewide, top 12%, 311 students, 15% FRL); Hampton Academy (math 41% / reading 66%, grade C+, #16 of 96 statewide, top 16%, 333 students, 16% FRL); Winnacunnet High School (math 43% / reading 63%, grade C-, #28 of 90 statewide, top 30%, 1,063 students, 17% FRL) — zoned schools at 16% FRL track the district average.
• Watch-outs: flood insurance adds $427/mo; built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+4.3%/yr); 117 active listings in the ZIP; solid renter incomes; 1,276 units permitted in Rockingham County in 2024 (593 in 5+ unit buildings).
• 4 sale attempts since 30y ago; this cycle's ask has dropped $50k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $480k; list at $800k implies a 67% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 4.3% rent growth), your $224k cash investment doubles in ~7 years — after that, you're playing with house money.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); severe wind risk, 80% 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 11.2% vs local median 1.3% in Hampton Beach — 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 $10,900/mo this rent would consume 137% of the median local household income ($95k/yr) (locally 544% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• 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?
• 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?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.