4 Elm St

Lancaster, NH 03584

$1,300,000B-

18 bd · 18.0 ba · 11,737 sqft · Built 1910 · MultiFamily · Active · 63 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $15,654/mo
• Mortgage (P&I): −$6,817
• Tax + insurance: −$1,995
• HOA: −$0
• Vac / Maint / Mgmt: −$3,287
• Net cashflow: $3,554/mo
• Annual: $42,654/yr
• Cap rate: 9.57%
• Cash-on-cash: 11.72%
• DSCR: 1.52
• 1% rule: 1.20%
• Cash to close: $364,000

Investor read

• This is a 18 × 1-bed/1-bath units multifamily listed at $1.30M.
• At list price, monthly cash flow is $4k ($43k/yr) — positive. Per door: $197/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($16k rent vs $1.30M).
• It's been on market 63 days — a 6% lower offer ($1.22M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.22M (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-1.5%/yr); year-one equity from $9k of loan paydown is wiped out by about $19k of value loss. Plan a longer hold.
• Location reads 67/100 on livability (#61 in NH) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing B; Watch: schools D, amenities F, commute F.
• White Mountain Regional School District (rural): math 26% / reading 42% proficiency, ranked #80 of 98 in NH (top 82%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: built in 1910 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 52 active listings in the ZIP; 95 units permitted in Coos County in 2024 (0 in 5+ unit buildings).
• Coos County population projected at -19% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 4 sale attempts since 5y ago; this cycle's ask has dropped $100k (7%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $940k; 38% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (-1.5% appreciation + 3.0% rent growth), your $364k cash investment doubles in ~8 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 63 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1910 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• 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.