68 King Road, Chichester, NH 03258 — 6.4% Cash-on-Cash

About this property

68 King Road is a five-bedroom, six-bath single-family estate in Chichester, NH, sitting on 2.1 acres with a privately accessed accessory dwelling unit built into the main structure.

The property's most commercially significant feature is its attached ADU — a fully equipped apartment with a private entrance that can generate rental income independently of the main living areas. That structural separation is what makes the cash-flow math work at this price point. The listing describes it as suitable for long-term tenancy, an in-law arrangement, or extended-stay guests, giving an owner multiple monetization paths without a separate parcel.

Beyond the ADU, there's a reported 3,466 sq ft of unfinished space — workshop, storage, or future buildout territory. That optionality has real value: it means a buyer isn't locked into the current footprint. Total living area is 6,534 sq ft, which at $879,900 comes to roughly $135 per square foot, a figure that warrants attention given the regional comp set.

The property has been on the market 70 days and had a $5,000 price reduction from its original ask. The tax-assessed value sits at $543,800 — a meaningful gap below the listing price that investors should factor into their underwriting. Public records confirm it's currently non-owner occupied, which typically eases the transition to a rental operation. The 2.1-acre lot provides the privacy buffer that justifies the "country estate" positioning in the listing.

The investment case

ZIP 03258's average cash-on-cash sits at 3.0%; this property clears 6.4%, the highest in the ZIP, driven by a cap rate of 9.1% and a debt service coverage ratio of 1.5.

List Price

$879,900

Monthly Payment (PITI+HOA)

$5,994

Principal & Interest

$4,394

Property Tax

$1,307

Insurance

$293

HOA

$0

PMI

$0

Est. Monthly Rent

$6,932

Estimated rent based on automated valuation of comparable listings.

Cash-on-Cash Return

6.4%

Cap Rate

9.1%

Monthly Cash Flow

$938

Gross Rent Multiplier

10.6

DSCR

1.5

At a $879,900 purchase price with 20% down, the total monthly payment lands at $5,994 — principal and interest at $4,394, taxes at $1,307, and insurance at $293. Against an estimated monthly rent of $6,932, that leaves $938 in monthly cash flow before maintenance reserves and vacancy. Net operating income is $6,639 per month, which annualizes to roughly $79,700.

The 9.1% cap rate is the number that stands out most. In a market where the city average cash-on-cash is negative at -10.0%, finding a deal that clears 9% unlevered is genuinely unusual. The DSCR of 1.5 means rental income covers the debt service by a comfortable margin — lenders typically want 1.25 or above, so this property has room for a rent miss or a vacancy period without triggering a cash crunch.

The gross rent multiplier of 10.6 is another signal worth parsing. Lower GRMs indicate less time to recoup the purchase price through rents — 10.6 is on the favorable end for a property in this price range. Compare that to the city median listing price of $599,900: this property costs 47% more than the median but is projected to generate cash flow that most local listings don't approach.

The effective property tax rate of 2.21% is high — $1,307 per month in taxes is a real drag. New Hampshire has no income or sales tax, so the property tax burden carries more weight than in other states. That's already baked into the $938 cash flow figure, but it's the first line item to stress-test if rents come in softer than projected. Figures exclude depreciation tax benefits, which vary by individual tax situation.

Annual return outlook

The 14.4% total five-year ROI breaks into three components — cash flow, appreciation, and mortgage paydown — with no single driver doing all the work.

Cash flow contributes 6.4% of the 14.4% total, making it the largest single component. That's the component with the most near-term certainty — it's grounded in current rents and current financing costs rather than a forecast. Mortgage paydown adds 3.8%, a mechanical return that compounds quietly as the loan amortizes. Combined, those two components alone deliver 10.2% without requiring any market appreciation.

Appreciation is estimated at approximately 4.2% annually, contributing the remaining portion of the five-year return. That figure is an estimate rather than a data-scraped market trend, so treat it as a directional input rather than a guarantee. Chichester sits five minutes from Concord and within 30 minutes of Manchester — proximity to two of New Hampshire's larger employment centers provides some fundamental support for that estimate, but it isn't a certainty.

What's notable about this return stack is its balance. Many deals in appreciation-driven markets are entirely dependent on price gains to justify the investment — here, the cash flow and paydown components alone would produce a return that beats the city's tenth-best deal (0.5% CoC) by a wide margin. An investor who bought this property and saw zero appreciation over five years would still come out ahead of most alternatives in Chichester.

The 5-year return thesis is unusually durable: cash flow and paydown carry 10.2% of the 14.4% total without requiring appreciation to materialize.

How it compares to nearby for-sale listings

Five for-sale comparables in the surrounding area establish a median comp price of $750,000, putting 68 King Road at a $129,900 premium to the local benchmark.

The comp set is instructive about what that premium buys. The nearest size comparison in the table — 271 Village Street in Concord at $660,000 with 2,981 sq ft — implies a price per square foot of roughly $221. At 6,534 sq ft and $879,900, King Road comes in at approximately $135 per square foot. On a pure square-footage basis, this property is priced at a significant discount to smaller comparables.

The 70 days on market is worth flagging. Two comps in the table have been sitting longer — 175 and 214 days respectively — but the faster-moving comps cleared in 10 to 12 days. King Road's 70-day tenure, combined with the $5,000 price reduction, suggests the market hasn't immediately absorbed the listing at its ask. That's not necessarily a red flag for a property of this size and price, but it does indicate negotiating room may exist.

The $543,800 tax-assessed value versus the $879,900 ask represents a 62% premium over assessed value. Assessed values in New Hampshire don't track market prices in real time, but a gap of that magnitude means an investor should do independent diligence on what the market will actually support — the comps suggest the price-per-square-foot math favors the buyer, but the absolute price is still well above the local median.

Rental demand in this zip

No directly comparable five-bedroom rentals were identified in ZIP 03258, which means the $6,932 monthly rent estimate carries more uncertainty than a comp-dense market would allow.

The absence of five-bedroom rental comps in this ZIP is the most significant underwriting risk in the deal. The $6,932 rent estimate is a modeled figure, not one anchored by active listings of similar size in the immediate area. For a property where the cash-flow thesis depends on that number holding, that's a variable worth stress-testing before closing.

The ADU structure partially mitigates this. Rather than betting entirely on a single tenant willing to pay nearly $7,000 per month for the full property, an owner could split the income stream — leasing the main house and the ADU separately. That strategy reduces dependence on finding one high-rent tenant and diversifies occupancy risk across two units. The private entrance described in the listing supports that split-tenancy approach operationally.

Proximity to Concord — five minutes by car — is the most relevant demand driver for rental viability. Concord's employment base and the property's scale suggest a professional household or a multi-generational family as the most realistic tenant profile. The 30-minute drive to Manchester extends that pool further. Neither of those demand signals is a substitute for actual rental comp data, but they provide a reasonable basis for the rent estimate not being wildly optimistic.

An investor should conduct independent rental market research, particularly for large single-family homes or split ADU arrangements in the Concord-Chichester corridor, before finalizing underwriting assumptions.

Who this property suits + risks to weigh

This property suits a cash-flow-oriented investor comfortable managing a large single-family home with an ADU in a low-density New Hampshire market — not a passive, set-it-and-forget-it play.

Best fit

The investor who gets the most out of this deal is one who can actively manage the ADU rental relationship — screening tenants, handling maintenance on a 6,500-plus square foot structure, and navigating the operational complexity of two households sharing a property. A local investor or one willing to hire competent property management fits better than an out-of-state passive buyer. The 6.4% cash-on-cash and 9.1% cap rate are strong enough that the deal works even after paying a property manager, which is a meaningful quality signal.

Multi-generational buyers who want to offset carrying costs with ADU income are another natural fit. The listing explicitly frames the ADU for that use case, and the math supports it — even partial ADU income meaningfully reduces the net monthly outlay on a $5,994 payment.

Risks to weigh

The rent estimate is unanchored by local five-bedroom comps, which is the deal's most material risk. If actual market rents for a property of this type come in 10-15% below the $6,932 estimate, monthly cash flow compresses sharply. The 2.21% effective tax rate is a fixed drag that doesn't flex with vacancy. And the 3,466 sq ft of unfinished space, while positioned as upside, is also deferred cost — heating, insuring, and maintaining that footprint adds to operating expenses even if it's never built out.

The 70-day market tenure and modest price reduction suggest this isn't a property with multiple competing offers. That's useful leverage in negotiation but also a signal that the buyer pool for a nearly $900,000 rural estate is narrow. Liquidity risk on exit is real in a market where the median listing price is $599,900.