8 Lewis St

Laconia, NH 03246

$975,000F

9 bd · 5.0 ba · 4,230 sqft · Built 1887 · MultiFamily · Active · 16 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,222/mo
• Mortgage (P&I): −$5,113
• Tax + insurance: −$1,012
• HOA: −$0
• Vac / Maint / Mgmt: −$1,517
• Net cashflow: $-419/mo
• Annual: $-5,031/yr
• Cap rate: 5.78%
• Cash-on-cash: -1.84%
• DSCR: 0.92
• 1% rule: 0.74%
• Cash to close: $273,000

Investor read

• This is a 4 × 2-bed/?-bath units multifamily listed at $975k.
• At list price, monthly cash flow is $-419 ($-5k/yr) — negative. Per door: $-105/mo.
• To cash-flow at today's rent, offer at most $901k (7.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $722k (25.9% below list).
• It's been on market 16 days — a 2% lower offer ($960k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $722k (25.9% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $7k of loan paydown is wiped out by about $29k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#20 in NH, #2,314 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: commute F.
• Laconia School District (town): math 24% / reading 31% proficiency, ranked #89 of 98 in NH (top 91%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Pleasant Street School (math 22% / reading 37%, grade F, #201 of 263 statewide, top 82%, 266 students, 46% FRL) — zoned schools at 46% FRL track the district average.
• Watch-outs: built in 1887 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+21.6%/yr); 188 active listings in the ZIP; 301 units permitted in Belknap County in 2024 (32 in 5+ unit buildings).
• Belknap County population projected at -10% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $90k; list at $975k implies a 977% gain — meaningful room to come down on a strong offer.
• Cap rate 5.8% vs local median 1.8% in Laconia — 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 $7,222/mo this rent would consume 118% of the median local household income ($73k/yr) (locally 722% 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?
• Built in 1887 — 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 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.