29 Home Ave

Manchester, NH 03103

$499,999F

4 bd · 2.0 ba · 2,576 sqft · Built 1920 · MultiFamily · Pending · 8 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,598/mo
• Mortgage (P&I): −$2,622
• Tax + insurance: −$745
• HOA: −$0
• Vac / Maint / Mgmt: −$546
• Net cashflow: $-1,314/mo
• Annual: $-15,771/yr
• Cap rate: 3.14%
• Cash-on-cash: -11.27%
• DSCR: 0.50
• 1% rule: 0.52%
• Cash to close: $140,000

Investor read

• This is a 4-bed/2.0-bath multifamily listed at $500k.
• At list price, monthly cash flow is $-1k ($-16k/yr) — negative.
• To cash-flow at today's rent, offer at most $268k (46.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $260k (48.0% below list).
• Only 8 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $260k (48.0% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $15k of value loss. Plan a longer hold.
• Location reads 83/100 on livability (#10 in NH, #879 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, housing A+.
• Manchester School District (urban): math 14% / reading 27% proficiency, ranked #96 of 98 in NH (top 98%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Highland-Goffes Falls School (math 22% / reading 32%, grade F, #219 of 263 statewide, top 86%, 325 students, 49% FRL); Southside Middle School (math 8% / reading 24%, grade F, #93 of 96 statewide, top 97%, 750 students, 50% FRL); Manchester Memorial High School (math 27% / reading 50%, grade F, #68 of 90 statewide, top 75%, 1,405 students, 34% FRL).
• Watch-outs: built in 1920 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+1.7%/yr); 99 active listings in the ZIP; 981 units permitted in Hillsborough County in 2024 (381 in 5+ unit buildings).
• Hillsborough County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 3 sale attempts since 6y ago; this cycle's ask is 22627% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• This rent runs 42% of the median local income ($74k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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?
• Built in 1920 — 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.
• 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.
• How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.