185 Berry River Rd

Rochester, NH 03825

$389,900D+

3 bd · 1.0 ba · 1,748 sqft · Built 2005 · SingleFamily · Pending · 21 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,625/mo
• Mortgage (P&I): −$2,045
• Tax + insurance: −$600
• HOA: −$42
• Vac / Maint / Mgmt: −$551
• Net cashflow: $-613/mo
• Annual: $-7,353/yr
• Cap rate: 4.41%
• Cash-on-cash: -6.74%
• DSCR: 0.70
• 1% rule: 0.67%
• Cash to close: $109,172

Investor read

• This is a 3-bed/1.0-bath single-family listed at $390k.
• At list price, monthly cash flow is $-613 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $282k (27.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $263k (32.7% below list).
• It's been on market 21 days — a 2% lower offer ($384k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $263k (32.7% below list) — sets the bar for 1% rule.
• In year one you build about $42k of equity ($3k loan paydown + $39k appreciation (10.0% local appreciation)).
• Location reads 84/100 on livability (#8 in NH, #698 nationally) — a professional / high-income tenant draw. Strengths: crime A+, commute A+, cost of living A+; Watch: amenities C-.
• Barrington School District (rural): math 45% / reading 47% proficiency, ranked #44 of 98 in NH (top 45%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 14% free/reduced lunch — higher-income household profile.
• Zoned schools: Barrington Elementary School (math 42% / reading 42%, grade F, #141 of 263 statewide, top 58%, 424 students, 9% FRL); Barrington Middle School (math 47% / reading 49%, grade C-, #29 of 96 statewide, top 29%, 382 students, 11% FRL) — zoned schools at 10% FRL track the district average.
• Market conditions: 77 active listings in the ZIP; 951 units permitted in Strafford County in 2024 (551 in 5+ unit buildings).
• Strafford County population projected at +7% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 5 sale attempts since 5y ago; this cycle's ask has dropped $30k (7%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $295k; 32% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 2, paydown + projected appreciation supports a ~$67k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 4.4% vs local median 3.3% in Rochester — 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.

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?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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 for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.