524 Sunapee St

Newport, NH 03773

$1,675,000C-

None bd · 144.0 ba · 8,424 sqft · Built 1920 · MultiFamily · Active · 106 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $17,864/mo
• Mortgage (P&I): −$8,784
• Tax + insurance: −$2,792
• HOA: −$0
• Vac / Maint / Mgmt: −$3,751
• Net cashflow: $2,537/mo
• Annual: $30,444/yr
• Cap rate: 8.11%
• Cash-on-cash: 6.49%
• DSCR: 1.29
• 1% rule: 1.07%
• Cash to close: $469,000

Investor read

• This is a 4×?bd/1ba + 4×1bd/1ba + 4×2bd/1ba units multifamily listed at $1.68M. Condition is rated good.
• At list price, monthly cash flow is $3k ($30k/yr) — positive. Per door: $211/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($18k rent vs $1.68M).
• It's been on market 106 days — a 9% lower offer ($1.52M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.52M (9.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $12k of loan paydown is wiped out by about $50k of value loss. Plan a longer hold.
• Location reads 76/100 on livability (#26 in NH, #3,805 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: schools D+, amenities F, commute F.
• Newport School District (town): math 10% / reading 21% proficiency, ranked #98 of 98 in NH (top 100%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Watch-outs: built in 1920 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 70 active listings in the ZIP; 98 units permitted in Sullivan County in 2024 (0 in 5+ unit buildings).
• Sullivan County population projected at -20% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Cap rate 8.1% vs local median 3.4% in Newport — 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 106 days. Have you received any prior offers? Is the seller open to a 9% 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?
• 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.