71 Caddy Dr

Derry, NH 03079

$299,000D

2 bd · 2.0 ba · 1,404 sqft · Built 2012 · Manufactured · Active · 139 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,712/mo
• Mortgage (P&I): −$1,568
• Tax + insurance: −$425
• HOA: −$500
• Vac / Maint / Mgmt: −$570
• Net cashflow: $-350/mo
• Annual: $-4,202/yr
• Cap rate: 4.89%
• Cash-on-cash: -5.02%
• DSCR: 0.78
• 1% rule: 0.91%
• Cash to close: $83,720

Investor read

• This is a 2-bed/2.0-bath manufactured listed at $299k.
• At list price, monthly cash flow is $-350 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $237k (20.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $271k (9.3% below list).
• It's been on market 139 days — a 12% lower offer ($263k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $237k (20.7% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.
• Location reads 81/100 on livability (#13 in NH, #1,420 nationally) — a professional / high-income tenant draw. Strengths: crime A+, amenities A+, housing A+; Watch: commute F.
• Salem School District (suburban): math 47% / reading 56% proficiency, ranked #28 of 98 in NH (top 29%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 14% free/reduced lunch — higher-income household profile.
• Zoned schools: North Salem Elementary School (math 52% / reading 57%, grade C, #62 of 263 statewide, top 30%, 366 students, 7% FRL); Woodbury School (math 41% / reading 60%, grade C, #21 of 96 statewide, top 21%, 777 students, 18% FRL); Salem High School (math 46% / reading 58%, grade D+, #30 of 90 statewide, top 34%, 1,134 students, 12% FRL) — zoned schools at 12% FRL track the district average.
• Market conditions: Rents rising (+2.6%/yr); 113 active listings in the ZIP; high-income renter base; 1,276 units permitted in Rockingham County in 2024 (593 in 5+ unit buildings).
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.9% vs local median 2.2% in Derry — 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 139 days. Have you received any prior offers? Is the seller open to a 21% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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 B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.