The Ridge Plan

Litchfield, NH 03052

$369,900F

3 bd · 2.0 ba · 1,493 sqft · Built — · SingleFamily · Active · 121 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,500/mo
• Mortgage (P&I): −$2,834
• Tax + insurance: −$901
• HOA: −$0
• Vac / Maint / Mgmt: −$735
• Net cashflow: $-969/mo
• Annual: $-11,631/yr
• Cap rate: 4.14%
• Cash-on-cash: -7.69%
• DSCR: 0.66
• 1% rule: 0.65%
• Cash to close: $151,300

Investor read

• This is a 3-bed/2.0-bath single-family listed at $370k. Condition is rated good.
• At list price, monthly cash flow is $-969 ($-12k/yr) — negative.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $350k (5.4% below list).
• It's been on market 121 days — a 12% lower offer ($326k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $326k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $16k of value loss. Plan a longer hold.
• Location reads: area grade F — affects rentability + tenant quality, not the cash-flow math above.
• Litchfield School District (rural): math 38% / reading 56% proficiency, ranked #34 of 98 in NH (top 35%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 7% free/reduced lunch — higher-income household profile.
• Zoned schools: Griffin Memorial School (math 42% / reading 57%, grade D, #97 of 263 statewide, top 42%, 437 students, 10% FRL); Litchfield Middle School (math 35% / reading 53%, grade D, #38 of 96 statewide, top 40%, 355 students, 9% FRL); Campbell High School (math 42% / reading 67%, grade C-, #27 of 90 statewide, top 29%, 412 students, 8% FRL) — zoned schools at 9% FRL track the district average.
• Market conditions: 70 active listings in the ZIP; 1 comparable units currently listed for rent nearby; high-income renter base; 981 units permitted in Hillsborough County in 2024 (381 in 5+ unit buildings).
• Hillsborough County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• Cap rate 4.1% vs local median 2.9% in Litchfield — 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 121 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• 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.
• 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.
• 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.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.