56 Merrimack Dr

Merrimack, NH 03054

$335,000D-

2 bd · 1.5 ba · 1,382 sqft · Built 1985 · Condo · Active · 79 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,075/mo
• Mortgage (P&I): −$1,757
• Tax + insurance: −$558
• HOA: −$495
• Vac / Maint / Mgmt: −$646
• Net cashflow: $-381/mo
• Annual: $-4,573/yr
• Cap rate: 4.93%
• Cash-on-cash: -4.88%
• DSCR: 0.78
• 1% rule: 0.92%
• Cash to close: $93,800

Investor read

• This is a 2-bed/1.5-bath condo listed at $335k. Condition is rated fair.
• At list price, monthly cash flow is $-381 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $280k (16.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $307k (8.2% below list).
• It's been on market 79 days — a 6% lower offer ($315k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $280k (16.5% below list) — sets the bar for cash-flow.
• 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: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• Merrimack School District (suburban): math 36% / reading 55% proficiency, ranked #41 of 98 in NH (top 42%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 8% free/reduced lunch — higher-income household profile.
• Market conditions: Rents rising (+3.4%/yr); 97 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 50% of comp listings sitting > 30 days — soft ceiling on asking rent; 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.
• 2 sale attempts 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.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y — expect insurance premiums to compound above CPI over the hold.

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 79 days. Have you received any prior offers? Is the seller open to a 16% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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?

Repairs flagged (vision-AI assessment)

• Moderate: kitchen cabinets — dated and in need of updating
• Moderate: kitchen appliances — dated and in need of updating
• Moderate: kitchen flooring — dated and in need of updating
• Moderate: bathroom vanity — dated and in need of updating
• Moderate: bathroom fixtures — dated and in need of updating
• Moderate: landscaping — some dead bushes