70 Hemlock Hvn #70

Hampton, NH 03842

$230,000D

3 bd · 1.0 ba · 1,332 sqft · Built 1978 · Manufactured · Pending · 31 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,147/mo
• Mortgage (P&I): −$1,206
• Tax + insurance: −$383
• HOA: −$550
• Vac / Maint / Mgmt: −$451
• Net cashflow: $-444/mo
• Annual: $-5,325/yr
• Cap rate: 3.98%
• Cash-on-cash: -8.27%
• DSCR: 0.63
• 1% rule: 0.93%
• Cash to close: $64,400

Investor read

• This is a 3-bed/1.0-bath manufactured listed at $230k.
• At list price, monthly cash flow is $-444 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $166k (27.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $215k (6.7% below list).
• It's been on market 31 days — a 3% lower offer ($223k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $166k (27.9% 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 $7k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#19 in NH, #2,140 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, health & safety A+; Watch: amenities D-, commute F, cost of living F.
• Hampton School District (suburban): math 49% / reading 66% proficiency, ranked #19 of 98 in NH (top 19%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 15% free/reduced lunch — higher-income household profile.
• Zoned schools: Adeline C. Marston School (math 59% / reading 66%, grade B, #31 of 263 statewide, top 12%, 311 students, 15% FRL); Hampton Academy (math 41% / reading 66%, grade C+, #16 of 96 statewide, top 16%, 333 students, 16% FRL); Winnacunnet High School (math 43% / reading 63%, grade C-, #28 of 90 statewide, top 30%, 1,063 students, 17% FRL) — zoned schools at 16% FRL track the district average.
• Watch-outs: HOA is 26% of rent.
• Market conditions: Rents rising fast (+4.3%/yr); 118 active listings in the ZIP; 1 comparable units currently listed for rent nearby; solid renter incomes; 1,276 units permitted in Rockingham County in 2024 (593 in 5+ unit buildings).
• 2 sale attempts since 8y ago; this cycle's ask has dropped $20k (8%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $60k; list at $230k implies a 283% gain — meaningful room to come down on a strong offer.
• Cap rate 4.0% vs local median 1.8% in Hampton — 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 31 days. Have you received any prior offers? Is the seller open to a 28% concession, seller financing, or rate buy-down credit?
• Built in 1978 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are A-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?
• 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.