I found a potential property which I think might be a winner! It's a 4 family in a very blue collar area in southern New Hampshire. One thing I worry about is appreciation in a rougher area but the cash flow seems to work.
Potential Purchase Price - $350,000
Down Payment - 20% or $70,000
Property Taxes - $5,100
Gross Rental Income - $50,000 per year (all four units are TAW currently occupied which originally had leases but owner let them lapse so new owner could do as they wish - all rents are current and in good standing)
After property management fee's, factoring in some maintenance costs, plowing, lawn mowing, and landlord paid utilities it looks like I will net between $15,000 and $18,000 per year positive cash flow.
Investor · MA · Member since 2014 · 164 posts · 114 votes
10y
I'm guessing this might be the one on Ash St in Nashua? The rule of thumb I've always heard is stay away from the tree streets but that may be an old adage that is no longer true. What I do know is that anyone with rentals in Nashua right now says they're in huge demand. Obviously just a few blocks away you have the gentrifying downtown that will only spread.
This ones worth a further look- you'll know right away when you do a showing what kind of shape it's in. I also always drive by at night to make sure. Move fast though!
Investor · MA · Member since 2014 · 164 posts · 114 votes
10y
I'm guessing this might be the one on Ash St in Nashua? The rule of thumb I've always heard is stay away from the tree streets but that may be an old adage that is no longer true. What I do know is that anyone with rentals in Nashua right now says they're in huge demand. Obviously just a few blocks away you have the gentrifying downtown that will only spread.
This ones worth a further look- you'll know right away when you do a showing what kind of shape it's in. I also always drive by at night to make sure. Move fast though!
Investor · Andover, MA · Member since 2015 · 269 posts · 67 votes
10y
@Matt Charbonneau if this is on 107 Ash I looked at this property and I liked what I saw: renovated plumbing and electrical, very well maintained plus numbers seem to make sense (4K/month rent and property taxes are not out of this world).
Location is a C- as you know and I would agree with @Will Stewart on the old adage but the gentrification is indeed happening from downtown onward.
Personally, the only reason why I didn't make an offer on this was because I made another offer in a 6 unit in Woonsocket, RI instead and working towards that as we speak.
Real Estate Broker · Manchester, NH · Member since 2014 · 630 posts · 420 votes
10y
If we're talking about Ash St, although its up to you, I always encourage people to look into a crime map of the area and see how comfortable they are with it. I'm guessing you won't be living there yourself, but some people have their own preferences.
Otherwise, the numbers on it look pretty good. Considering a $50K per year gross income, the expenses you listed, definitely leaves you a nice profit. And the taxes are fairly low too, which is certainly a benefit. Assuming there are no hidden surprises, I'd definitely go for it.