53 Sullivan Rd

Londonderry, NH 03051-3963

$625,000C-

3 bd · 1.5 ba · 2,178 sqft · Built 1979 · SingleFamily · Pending · 7 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,233/mo
• Mortgage (P&I): −$3,278
• Tax + insurance: −$948
• HOA: −$0
• Vac / Maint / Mgmt: −$1,099
• Net cashflow: $-91/mo
• Annual: $-1,098/yr
• Cap rate: 6.12%
• Cash-on-cash: -0.63%
• DSCR: 0.97
• 1% rule: 0.84%
• Cash to close: $175,000

Investor read

• This is a 3-bed/1.5-bath single-family listed at $625k.
• At list price, monthly cash flow is $-91 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $609k (2.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $523k (16.3% below list).
• Only 7 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $523k (16.3% below list) — sets the bar for 1% rule.
• In year one you build about $23k of equity ($4k loan paydown + $19k appreciation (3.0% local appreciation)).
• Location reads 80/100 on livability (#16 in NH, #1,834 nationally) — a professional / high-income tenant draw. Strengths: crime A+, employment A+, housing A+; Watch: cost of living D, amenities F, commute F.
• Hudson School District (suburban): math 38% / reading 50% proficiency, ranked #48 of 98 in NH (top 49%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 13% free/reduced lunch — higher-income household profile.
• Zoned schools: Nottingham West Elementary School (math 40% / reading 49%, grade F, #126 of 263 statewide, top 52%, 445 students, 17% FRL); Hudson Memorial School (math 29% / reading 44%, grade F, #53 of 96 statewide, top 56%, 692 students, 15% FRL); Alvirne High School (math 39% / reading 58%, grade D, #46 of 90 statewide, top 51%, 1,038 students, 12% FRL) — zoned schools at 14% FRL track the district average.
• Market conditions: 1 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 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.
• 2 sale attempts since 5y 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 $467k; 34% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 2, paydown + projected appreciation supports a ~$38k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• 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 6.1% vs local median 2.5% in Londonderry — 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?
• Built in 1979 — 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 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?
• 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.