235 Longview Union Grove Rd

Peapack and Gladstone, NJ 07931

$2,197,000F

4 bd · 3.5 ba · 5,848 sqft · Built 2020 · SingleFamily · Active · 68 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,370/mo
• Mortgage (P&I): −$11,521
• Tax + insurance: −$2,100
• HOA: −$0
• Vac / Maint / Mgmt: −$918
• Net cashflow: $-10,169/mo
• Annual: $-122,032/yr
• Cap rate: 0.74%
• Cash-on-cash: -19.84%
• DSCR: 0.12
• 1% rule: 0.20%
• Cash to close: $615,160

Investor read

• This is a 4-bed/3.5-bath single-family listed at $2.20M.
• At list price, monthly cash flow is $-10k ($-122k/yr) — negative.
• To cash-flow at today's rent, offer at most $401k (81.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $437k (80.1% below list).
• It's been on market 68 days — a 6% lower offer ($2.07M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $401k (81.8% below list) — sets the bar for cash-flow.
• In year one you build about $26k of equity ($15k loan paydown + $11k appreciation (0.5% local appreciation)).
• Location reads 66/100 on livability (#359 in NJ) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, commute B; Watch: health & safety D, amenities F, cost of living F.
• Bedminster Township Public School District (rural): math 42% / reading 58% proficiency, ranked #116 of 472 in NJ (top 25%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 4% free/reduced lunch — higher-income household profile.
• Market conditions: 27 active listings in the ZIP; 678 units permitted in Somerset County in 2024 (296 in 5+ unit buildings).
• Somerset County population projected at +13% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 3 sale attempts since 8y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $490k; list at $2.20M implies a 348% gain — meaningful room to come down on a strong offer.
• By year 5, paydown + projected appreciation supports a ~$130k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 68 days. Have you received any prior offers? Is the seller open to a 82% concession, seller financing, or rate buy-down credit?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.