56 Nudd Ave

Hampton Beach, NH 03942

$564,500B-

4 bd · 2.0 ba · 1,464 sqft · Built 1953 · MultiFamily · Active · 66 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,688/mo
• Mortgage (P&I): −$2,960
• Tax + insurance: −$1,236
• HOA: −$0
• Vac / Maint / Mgmt: −$1,614
• Net cashflow: $1,877/mo
• Annual: $22,521/yr
• Cap rate: 11.19%
• Cash-on-cash: 17.49%
• DSCR: 1.78
• 1% rule: 1.36%
• Cash to close: $158,060

Investor read

• This is a 4-bed/2.0-bath multifamily listed at $564k.
• At list price, monthly cash flow is $2k ($23k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($8k rent vs $564k).
• It's been on market 66 days — a 6% lower offer ($531k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $531k (6.0% below list) — sets the bar for market timing.
• In year one you build about $21k of equity ($4k loan paydown + $17k appreciation (3.0% local appreciation)).
• 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 1953 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 1 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 1,276 units permitted in Rockingham County in 2024 (593 in 5+ unit buildings).
• At projected returns (3.0% appreciation + 3.0% rent growth), your $158k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); major wind risk, 72% 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.

Questions for listing agent

• It's been on market 66 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Built in 1953 — 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?
• 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.
• 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.