CAP Rate in Concord NH?

Question

Hey All! Any current Concord NH multi-family investors that can provide some guidance/assistance?

I have a client looking to invest in a 4-family in Concord NH. There's not a lot of comps to confirm value on a particular property. Any thoughts on average CAP rate for the area?

How about rents? Any information on average market rents for 1, 2 and 3 bedrooms near the UNH Law School area would be helpful!

Please and thank you!

Matthew Dennehy · Answer

Depending on condition, you can probably, safely get the gross rents to 65k (separate utilities).  Hopefully that helps too!

Jessica Tomlinson · Answer

@Jessica Stevenson - Thanks for the note! I've come across some of those comps myself. However, a couple are mixed use residential or not quite in the right areas. I'm not seeing much in the $400K range, which is what this seller is looking for. Property is 3-2 bedrooms and 1-4 bedroom unit in the Rumford / N Spring St area of Concord.

As far rentals are going, looking online at Zillow, MLS, Craigslist, Apartments.com, etc.

Matthew Dennehy · Answer

Average CAP rates for listed properties in Concord probably fall around the 7-8% depending on timing.  8-10% is possible with some good negotiations and a solid plan in place for raising under market rents.  There is often additional room for value-add in many properties that get listed.  Hopefully that answers your questions!

Jessica Stevenson · Answer

Hey @Jessica Tomlinson - a quick MLS search of 4-families closed in the last 12 months in Concord gives me 9 comps, with two additional ones currently under contract.  Value and cap rate will fluctuate based on specific neighborhood, how familiar are you with the area?  What popular rental sites have you checked to get a good idea of current market rents?