7 & 9 Glen St

Farmington, NH 03835

$336,000B

None bd · 2.0 ba · 2,408 sqft · Built 1893 · MultiFamily · Pending · 30 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,384/mo
• Mortgage (P&I): −$1,762
• Tax + insurance: −$560
• HOA: −$0
• Vac / Maint / Mgmt: −$921
• Net cashflow: $1,141/mo
• Annual: $13,696/yr
• Cap rate: 10.37%
• Cash-on-cash: 14.56%
• DSCR: 1.65
• 1% rule: 1.30%
• Cash to close: $94,080

Investor read

• This is a ?-bed/2.0-bath multifamily listed at $336k. Condition is rated fair.
• At list price, monthly cash flow is $1k ($14k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($4k rent vs $336k).
• It's been on market 30 days — a 2% lower offer ($331k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $331k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Location reads 64/100 on livability (#79 in NH) — a middle-class / working-renter tenant base. Strengths: cost of living A+, crime A, housing A-; Watch: health & safety C-, schools D, amenities F.
• Farmington School District (rural): math 20% / reading 36% proficiency, ranked #86 of 98 in NH (top 88%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Watch-outs: built in 1893 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 35 active listings in the ZIP; 951 units permitted in Strafford County in 2024 (551 in 5+ unit buildings).
• Strafford County population projected at +7% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $94k cash investment doubles in ~9 years — after that, you're playing with house money.
• Cap rate 10.4% vs local median 3.3% in Farmington — 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 $4,384/mo this rent would consume 79% of the median local household income ($67k/yr) (locally 201% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1893 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Repairs flagged (vision-AI assessment)

• Moderate: kitchen cabinets — dated and worn
• Moderate: bathroom fixtures — basic and dated
• Moderate: roof shingles — visible wear