12 bd · 6.0 ba ·
5,353 sqft ·
Built 1900
· MultiFamily
· Active
· 1 DOM
Cashflow @ list (25.0% down · 7.5%)
Estimated rent
$11,592/mo
Mortgage (P&I)
−$6,791
Tax + insurance
−$2,158
HOA
−$0
Vac / Maint / Mgmt
−$2,434
Net cashflow
$208/mo
Annual
$2,499/yr
Cap rate
6.49%
Cash-on-cash
0.69%
DSCR
1.03
1% rule
0.90%
Cash to close
$362,600
Investor read
This is a 6 × 2-bed/1.0-bath units multifamily listed at $1.29M.
At list price, monthly cash flow is $208 ($2k/yr) — positive. Per door: $35/mo.
The deal already cash-flows at list — no discount required.
To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.16M (10.5% below list).
Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
Recommended offer: $1.16M (10.5% below list) — sets the bar for 1% rule.
Local home prices are declining (-3.0%/yr); year-one equity from $9k of loan paydown is wiped out by about $39k of value loss. Plan a longer hold.
Location reads 86/100 on livability (#6 in NH, #368 nationally) — a professional / high-income tenant draw. Strengths: crime A+, commute A+, housing A+; Watch: amenities F.
Newmarket School District (suburban): math 39% / reading 59% proficiency, ranked #37 of 98 in NH (top 38%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 18% free/reduced lunch — higher-income household profile.
Zoned schools: Newmarket Elementary School (math 36% / reading 54%, grade D-, #125 of 263 statewide, top 47%, 472 students, 15% FRL); Newmarket Jr.-Sr. High (Elem) (math 37% / reading 60%, grade C-, #28 of 96 statewide, top 28%, 223 students, 19% FRL); Newmarket Jr.-Sr. High School (math 62% / reading 72%, grade B, #12 of 90 statewide, top 13%, 270 students, 16% FRL) — zoned schools at 17% FRL track the district average.
Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
Market conditions: 37 active listings in the ZIP; solid renter incomes; 1,276 units permitted in Rockingham County in 2024 (593 in 5+ unit buildings).
Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
Cap rate 6.5% vs local median 1.2% in Newmarket — 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 $11,592/mo this rent would consume 138% of the median local household income ($101k/yr) (locally 414% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.
Questions for listing agent
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 1900 — 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?
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.
CashFlowRE · CFR-Q07GQR3TSZ8D7Z
· Data 3 weeks agocashflowre.app · 2026-05-29