12 Manchester St

Hampton Beach, NH 03842

$899,000D+

9 bd · 3.9 ba · 0 sqft · Built 1920 · MultiFamily · Active · 53 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $8,118/mo
• Mortgage (P&I): −$4,714
• Tax + insurance: −$1,925
• HOA: −$0
• Vac / Maint / Mgmt: −$1,705
• Net cashflow: $-226/mo
• Annual: $-2,713/yr
• Cap rate: 6.56%
• Cash-on-cash: 0.96%
• DSCR: 1.04
• 1% rule: 0.90%
• Cash to close: $251,720

Investor read

• This is a 3 × 3-bed/?-bath units multifamily listed at $899k.
• At list price, monthly cash flow is $-226 ($-3k/yr) — negative. Per door: $-75/mo.
• To cash-flow at today's rent, offer at most $866k (3.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $812k (9.7% below list).
• It's been on market 53 days — a 3% lower offer ($872k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $812k (9.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $6k of loan paydown is wiped out by about $27k 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 1920 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+4.3%/yr); 118 active listings in the ZIP; solid renter incomes; 1,276 units permitted in Rockingham County in 2024 (593 in 5+ unit buildings).
• 2 sale attempts since 23y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $150k; list at $899k implies a 499% gain — meaningful room to come down on a strong offer.
• 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→17/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.6% 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 $8,118/mo this rent would consume 102% 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

• 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 53 days. Have you received any prior offers? Is the seller open to a 10% concession, seller financing, or rate buy-down credit?
• 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 1920 — 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?