8 Manor Drive #A, Hooksett, NH 03106 — 1.0% Cash-on-Cash

About this property

8 Manor Drive #A is a 2017-built end-unit townhouse in Hooksett, NH, offering 2,189 square feet across three levels with three bedrooms and four bathrooms.

The property's layout does real work for a rental: the open main level with granite countertops and a center island flows to a private balcony, while the finished walkout lower level adds a recreation room and half bath — functional square footage that commands rent rather than sitting idle. Upstairs, second-floor laundry and a primary suite with double vanities and a walk-in shower are the kinds of details that attract longer-tenancy renters. The attached two-car garage with direct entry is a meaningful differentiator in a New England market where winter parking matters to tenants.

Built in 2017, the property sits well inside the age range where major mechanical systems carry remaining useful life. The tax-assessed value of $467,900 against a $549,900 ask reflects a 17.5% premium to assessed value — not unusual for a well-finished end unit, but worth noting. Listed at day one on market, there's no distress signal here; this is a clean, non-foreclosure listing on a non-owner-occupied property. HOA coverage includes landscaping and snow removal, which reduces both landlord labor and the risk of deferred exterior maintenance.

The investment case

A 1.0% cash-on-cash return sounds thin in isolation, but against Hooksett's city average of -10.0%, this property is an outlier worth examining closely.

List Price

$549,900

Monthly Payment (PITI+HOA)

$3,999

Principal & Interest

$2,778

Property Tax

$788

Insurance

$183

HOA

$250

PMI

$0

Est. Monthly Rent

$4,093

Estimated rent based on automated valuation of comparable listings.

Cash-on-Cash Return

1.0%

Cap Rate

8.0%

Monthly Cash Flow

$94

Gross Rent Multiplier

11.2

DSCR

1.3

At a $549,900 purchase price with 20% down, total monthly carrying costs land at $3,999 — principal and interest at $2,778, property taxes at $788, insurance at $183, and HOA fees at $250. Estimated monthly rent of $4,093 produces $94 in monthly cash flow and a 1.0% cash-on-cash return. That's not a number that makes a pure cash-flow investor's pulse race. What it does do is clear the bar in a market where the average deal runs deeply negative.

The cap rate of 8.0% is the more compelling figure. Net operating income of $3,660 per month against a $549,900 valuation implies the asset is priced at a reasonable income multiple independent of financing structure. The gross rent multiplier of 11.2 and a debt service coverage ratio of 1.3 both confirm the property services its debt with a meaningful cushion — a DSCR above 1.0 means rent covers the mortgage, taxes, insurance, and HOA with room left over.

The HOA fee of $250 per month is the most meaningful cost lever here. It's non-negotiable and doesn't compress with scale, so underwriting should treat it as fixed. On the positive side, it eliminates landscaping and snow removal from the operating cost stack, which is real value in southern New Hampshire. Figures exclude depreciation tax benefits, which vary by individual tax situation.

For a Hooksett investor, this property ranks among the strongest cash-flow opportunities currently listed — not because the absolute return is high, but because the local baseline makes positive cash flow genuinely rare.

Annual return outlook

The 9.3% projected total 5-year ROI draws from three sources, with mortgage paydown and estimated appreciation doing more of the lifting than cash flow alone.

Breaking down the 9.3% total return: cash flow contributes 1.0%, an estimated 4.2% annual appreciation rate adds another 4.2%, and mortgage paydown accounts for 4.1%. That paydown figure is meaningful — at a 6.55% fixed rate on a $439,920 loan, early amortization is relatively slow, but over five years it still builds equity that compounds into the return calculation.

The appreciation estimate of approximately 4.2% annually is an LLM-derived projection, not a scraped market data point. That distinction matters for underwriting. Southern New Hampshire has historically benefited from Boston-area spillover demand, and Hooksett's position between Manchester and Concord along I-93 supports a structural demand case. But any appreciation figure that isn't grounded in trailing transaction data carries uncertainty. An investor stress-testing this deal should model a scenario where appreciation runs at 2% — under that assumption, total ROI drops to roughly 7.1%, which still clears a reasonable hurdle for a leveraged real estate position.

Cash flow's 1.0% contribution means the deal doesn't self-fund aggressively, but the DSCR of 1.3 provides a buffer against vacancy or rent softness without immediately turning cash-flow negative. A one-month vacancy in a 12-month period would reduce annual cash flow materially, so underwriting a 92-95% occupancy rate is prudent.

How it compares to nearby for-sale listings

Five active for-sale listings in the Hooksett area provide pricing context, with a median comp price of $519,000 against this property's $549,900 ask.

At $549,900 for 2,189 square feet, this property prices at roughly $251 per square foot. The comp set spans a wide range — from a 2-bedroom condo at $245,000 to a 4-bedroom listing at $839,000 — which limits direct apples-to-apples comparison. The most relevant data point is the $519,000 listing at 449 W. River Road, a 4-bedroom, 2,256-square-foot property that prices at approximately $230 per square foot. On a per-square-foot basis, 8 Manor Drive #A carries a premium, which an end-unit configuration, newer build year, and four full bathrooms can partially justify.

The $784,900 listing at 317 University Circle offers 4 bedrooms and 4 bathrooms in 2,508 square feet — a larger footprint at a significantly higher price point. That comp doesn't compress the Manor Drive ask; it actually frames it as mid-market for a well-finished, multi-bath property in the area.

Days on market across the comp set range from 15 to 85 days, with the $519,000 River Road listing sitting at just 15 days — suggesting demand exists at the sub-$550K price point. At day one on market, 8 Manor Drive #A hasn't yet signaled any pricing friction, but the 85-day outlier at $389,900 is a reminder that even lower-priced inventory can sit if the product-market fit isn't right.

Rental demand in this zip

No active rental comps were identified in ZIP 03106 for 3-bedroom properties, which means the $4,093 monthly rent estimate carries meaningful uncertainty.

The $4,093 estimated monthly rent is the single most important assumption in this deal's cash-flow math, and it's also the least validated. With zero comparable rentals identified in the immediate ZIP code, there's no local transaction data to anchor the estimate. That's not necessarily a red flag — low rental inventory can reflect strong absorption — but it does mean an investor can't triangulate the rent figure against recent lease comps before underwriting.

The property's characteristics support a rent in this range on a qualitative basis: 2,189 square feet, four bathrooms, a two-car garage, and finished lower level are above-average for the rental market. The HOA's inclusion of landscaping and snow removal is a genuine tenant amenity in New Hampshire, where those costs are real. Proximity to Southern New Hampshire University, mentioned in the listing, suggests a potential pool of faculty, staff, or graduate-level renters who may prioritize space and quality over price sensitivity.

The risk is straightforward: if the achievable rent is $3,700 rather than $4,093, monthly cash flow turns negative and the CoC return disappears. An investor entering this deal should conduct direct market outreach — contact local property managers for a current rent opinion before closing. The deal's DSCR of 1.3 provides some cushion, but not enough to absorb a 10% rent miss without consequence.

Who this property suits + risks to weigh

This property fits a patient, appreciation-oriented investor who can tolerate thin cash flow in exchange for a well-maintained, low-maintenance asset in a supply-constrained market.

Best fit

The investor profile here is someone with a 5-to-10-year hold horizon who values asset quality and management simplicity over immediate yield. The HOA structure eliminates exterior maintenance decisions, the 2017 build year minimizes near-term capital expenditure risk, and the end-unit configuration tends to attract tenants who treat the property more carefully than interior units. For a landlord managing remotely or as a secondary investment, those factors reduce operational friction meaningfully.

The 9.3% projected total ROI — weighted toward mortgage paydown and estimated appreciation rather than cash flow — suits an investor who is comfortable treating real estate as a wealth-building vehicle rather than an income stream. At $94 per month in cash flow, this property won't fund a lifestyle, but it also won't drain one if the rent estimate holds.

Risks to weigh

The rent estimate's lack of local comp support is the primary underwriting risk. A $400 miss on monthly rent — roughly 10% — eliminates cash flow entirely and pushes CoC negative. Second, the $250 monthly HOA fee is a fixed cost that doesn't flex with market conditions; if HOA dues increase, the cash-flow math deteriorates further. Third, the tax-assessed value of $467,900 against a $549,900 purchase price means the investor is paying a premium that assessed value doesn't yet reflect — New Hampshire's 2.21% effective property tax rate applied to a future reassessment at purchase price would push monthly taxes above $1,000, compressing returns. Finally, the appreciation estimate of 4.2% is modeled, not market-derived, and accounts for 45% of the projected 5-year ROI. Investors who need that figure to be accurate to hit their return targets are carrying model risk.