402-404 Washington

Burlington, NJ 08036

$425,000F

6 bd · 3.0 ba · 2,212 sqft · Built 1950 · Manufactured · Active Under Contract · 3 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,577/mo
• Mortgage (P&I): −$2,229
• Tax + insurance: −$655
• HOA: −$0
• Vac / Maint / Mgmt: −$541
• Net cashflow: $-848/mo
• Annual: $-10,178/yr
• Cap rate: 3.90%
• Cash-on-cash: -8.55%
• DSCR: 0.62
• 1% rule: 0.61%
• Cash to close: $119,000

Investor read

• This is a 6-bed/3.0-bath manufactured listed at $425k.
• At list price, monthly cash flow is $-848 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $275k (35.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $258k (39.4% below list).
• Only 3 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $258k (39.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-1.4%/yr); year-one equity from $3k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 78/100 on livability (#89 in NJ, #2,359 nationally) — a middle-class / working-renter tenant base. Strengths: housing A+, health & safety A+, cost of living A-; Watch: amenities F.
• Hainesport Township School District (suburban): math 27% / reading 53% proficiency, ranked #205 of 472 in NJ (top 43%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 10% free/reduced lunch — higher-income household profile.
• Zoned schools: Hainesport Township School (math 27% / reading 53%, grade F, #466 of 1,303 statewide, top 36%, 526 students, 10% FRL); Rancocas Valley Regional High School (math 29% / reading 49%, grade F, #197 of 399 statewide, top 51%, 1,981 students, 25% FRL).
• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 31 active listings in the ZIP; 2,161 units permitted in Burlington County in 2024 (988 in 5+ unit buildings).
• Burlington County population projected to shrink 5% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 3 sale attempts since 24y 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 $221k; list at $425k implies a 92% gain — meaningful room to come down on a strong offer.

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?
• Built in 1950 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.