375 Whitehall Rd

South Hooksett, NH 03106

$585,000D

4 bd · 3.0 ba · 1,862 sqft · Built 1985 · MultiFamily · Pending · 6 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,705/mo
• Mortgage (P&I): −$3,068
• Tax + insurance: −$668
• HOA: −$0
• Vac / Maint / Mgmt: −$988
• Net cashflow: $-19/mo
• Annual: $-228/yr
• Cap rate: 6.25%
• Cash-on-cash: -0.14%
• DSCR: 0.99
• 1% rule: 0.80%
• Cash to close: $163,800

Investor read

• This is a 2 × 2-bed/2.0-bath units multifamily listed at $585k.
• At list price, monthly cash flow is $-19 ($-228/yr) — negative. Per door: $-10/mo.
• To cash-flow at today's rent, offer at most $582k (0.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $470k (19.6% below list).
• Only 6 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $470k (19.6% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $18k of value loss. Plan a longer hold.
• Location reads 75/100 on livability (#31 in NH, #4,309 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, housing A+, employment A; Watch: amenities F, commute F.
• Hooksett School District (suburban): math 54% / reading 56% proficiency, ranked #22 of 98 in NH (top 22%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 14% free/reduced lunch — higher-income household profile.
• Zoned schools: Fred C. Underhill School (428 students, 13% FRL); David R. Cawley Middle School (math 51% / reading 55%, grade C+, #17 of 96 statewide, top 17%, 429 students, 16% FRL) — zoned schools at 14% FRL track the district average.
• Market conditions: 55 active listings in the ZIP; high-income renter base; 380 units permitted in Merrimack County in 2024 (28 in 5+ unit buildings).
• Merrimack County population projected to shrink 5% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 5 sale attempts since 22y 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 $460k; 27% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Cap rate 6.3% vs local median 1.6% in South Hooksett — 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 $4,705/mo this rent would consume 48% of the median local household income ($118k/yr) (locally 194% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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?
• 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?
• 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?
• 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.
• 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.