4B Red Oak Way, Boscawen, NH 03303 — 1.4% Cash-on-Cash

About this property

4B Red Oak Way is a 3-bedroom, 2-bath townhouse in the Lord Edward Condominium Association, offering 1,425 square feet of finished living space in Boscawen, NH.

The unit is move-in ready, with stainless steel appliances in the kitchen, fresh interior paint, and new carpeting on the stairs, second-floor landing, and all bedrooms. Laminate flooring runs through the kitchen and living room. That combination of updated finishes reduces near-term capital expenditure risk for an incoming landlord.

A full walk-out basement adds meaningful utility — either as storage or as a future finishing project that could expand rentable square footage. Two dedicated parking spaces are included, a practical detail that matters to tenants in a suburban market without street parking density.

The association sits on roughly 7.87 common acres and includes a playground, which broadens the tenant pool toward families. Six days on market at list price with no price reduction signals healthy demand at this price point. The $250/month HOA fee is the most significant cost variable to model carefully, as it directly compresses cash flow.

The investment case

A 1.4% cash-on-cash return sounds modest in isolation, but against a city average of -10%, it marks this property as one of the few deals in Boscawen that doesn't require an appreciation thesis just to break even.

List Price

$362,400

Monthly Payment (PITI+HOA)

$2,830

Principal & Interest

$1,831

Property Tax

$628

Insurance

$121

HOA

$250

PMI

$0

Est. Monthly Rent

$2,916

Estimated rent based on automated valuation of comparable listings.

Cash-on-Cash Return

1.4%

Cap Rate

8.4%

Monthly Cash Flow

$86

Gross Rent Multiplier

10.4

DSCR

1.4

The numbers: estimated monthly rent of $2,916 against a total monthly payment of $2,830 produces $86 in cash flow. That's thin, but it's positive — a distinction that matters in a market where most listings are structurally cash-flow negative at 20% down and current rates.

The cap rate of 8.4% is the more compelling figure. Net operating income of $2,545/month implies the property's income relative to its purchase price is strong, even after accounting for the $250/month HOA. A debt service coverage ratio of 1.4 means the property generates 40% more income than needed to service the mortgage — a cushion that most lenders view favorably and that provides a buffer against vacancy or modest rent softness.

The gross rent multiplier of 10.4 is well below the city's median listing price of $599,900, reinforcing that this unit is priced efficiently relative to its income potential. At 6.55% on a 30-year fixed, the $1,831 principal-and-interest payment reflects current rate reality. Property taxes at $628/month — reflecting a 2.21% effective rate — are the second-largest cost line and worth stress-testing if assessed values move.

Figures exclude depreciation tax benefits, which vary by individual tax situation.

For a buyer seeking actual monthly cash flow in Boscawen rather than a pure appreciation play, this property is in rare company locally.

Annual return outlook

The 9.7% projected total ROI draws from three sources — and only one of them is cash flow.

Cash flow contributes 1.4% of that total. The heavier lifting comes from mortgage paydown at 4.1% and an estimated 4.2% annual appreciation, which together account for the remaining 8.3 percentage points. That composition matters: two-thirds of the projected return is illiquid until sale or refinance.

The appreciation figure is an estimate, not a market-derived data point, so it carries inherent uncertainty. Boscawen's proximity to Concord and access to I-93 support a reasonable long-term demand floor, but appreciation rates can diverge sharply from estimates depending on rate cycles and regional job trends. Treat the 4.2% as a plausible scenario, not a guarantee.

Mortgage paydown at 4.1% is the most predictable component — it accrues mechanically with each payment regardless of market conditions. For a five-year hold, that equity accumulation is real and relatively low-risk.

The takeaway: this isn't a cash-flow-dominant investment. It's a balanced-return vehicle where appreciation and paydown do most of the work. Investors who need immediate income yield above 1.4% should model that explicitly before committing.

How it compares to nearby for-sale listings

Five active 3-bedroom listings in the immediate area provide a pricing baseline, with a comp median of $569,900 — well above this property's $362,400 ask.

At $362,400, this townhouse is priced 36% below the for-sale comp median. On a per-square-foot basis, 1,425 square feet at that price works out to roughly $254/sqft. The nearest comp by price — two units at $439,000 — both offer more bathrooms and slightly different square footage profiles, but neither closes the gap to this property's price point.

The $625,000 listing on Woodbury Lane in Boscawen itself, at 1,800 square feet, illustrates how much the single-family detached premium runs locally. This townhouse's HOA structure and shared-wall format explain much of the discount, but the income metrics suggest the market is pricing the income stream correctly rather than penalizing it.

Six days on market with no price reduction, in a comp set where the next-newest listing is three days old, suggests this unit entered the market competitively. The absence of stale inventory in this comp set points to active buyer interest at these price levels in the zip.

Rental demand in this zip

There are no active rental comp listings in ZIP 03303 to validate the $2,916 monthly rent estimate directly.

The $2,916 estimated rent is the central variable in this deal's cash-flow math, and the absence of active rental comps in the zip means that figure carries more uncertainty than it would in a denser rental market. The estimate can't be cross-checked against local lease data at this time.

That uncertainty cuts both ways. Boscawen's position adjacent to Concord — the state capital — and its access to I-93 suggest a functional tenant demand base, but rent levels in smaller New Hampshire towns can vary significantly from model estimates. A landlord entering this deal should verify achievable rent through direct outreach to local property managers before closing.

What the numbers show: at $2,916/month, the rent-to-price ratio is approximately 0.80%, which is above the 0.5-0.6% range that typically signals cash-flow viability at current rates. The 8.4% cap rate supports the rent assumption implicitly — if achievable rent were materially lower, the cap rate would compress toward market norms. Still, independent rent verification is the most important due-diligence step for this specific deal given the comp data gap.

Who this property suits + risks to weigh

This property suits a patient, buy-and-hold investor who can tolerate thin monthly cash flow in exchange for a balanced three-part return profile over five or more years.

Best fit

An investor comfortable with a 1.4% cash-on-cash return — knowing it ranks among the top deals in a city where the average is -10% — will find this property defensible. The 1.4x debt service coverage ratio provides meaningful protection against short vacancies without requiring the investor to fund shortfalls from outside income. The move-in-ready condition and HOA-managed exterior reduce hands-on management demands, making this viable for an out-of-area owner or a first-time landlord who wants a lower-maintenance asset.

The price point at $362,400, well below the city median of $599,900, also limits downside exposure relative to higher-priced inventory in the same market. Families are a natural tenant profile given the three bedrooms, playground access, and proximity to Concord employment.

Risks to weigh

The $250/month HOA fee is the most direct cash-flow lever. Any HOA assessment increase compresses an already thin $86/month margin quickly. Investors should review the association's reserve fund status before closing — an underfunded HOA in a 7.87-acre complex can generate special assessments that materially change the return profile.

The rent estimate lacks local comp support, which introduces projection risk. A 10% shortfall in achievable rent — roughly $290/month less — would flip this deal cash-flow negative. The 2.21% effective property tax rate is among the higher rates in New England and is unlikely to decline. Finally, the appreciation component at an estimated 4.2% annually accounts for the largest share of projected return; if that figure doesn't materialize, total ROI drops meaningfully.