58 Hollow Rd

Anderson, NJ 08826-3133

$70,000B

1 bd · 0.5 ba · 676 sqft · Built 1963 · SingleFamily · Under Contract · 55 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,090/mo
• Mortgage (P&I): −$367
• Tax + insurance: −$274
• HOA: −$0
• Vac / Maint / Mgmt: −$229
• Net cashflow: $220/mo
• Annual: $2,635/yr
• Cap rate: 11.20%
• Cash-on-cash: 17.51%
• DSCR: 1.78
• 1% rule: 1.56%
• Cash to close: $19,600

Investor read

• This is a 1-bed/0.5-bath single-family listed at $70k.
• At list price, monthly cash flow is $220 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $70k).
• It's been on market 55 days — a 3% lower offer ($68k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $68k (3.0% below list) — sets the bar for market timing.
• In year one you build about $3k of equity ($484 loan paydown + $2k appreciation (3.0% local appreciation)).
• Location reads 48/100 on livability (#536 in NJ) — a working-class tenant base; expect higher turnover. Strengths: crime A, cost of living B; Watch: health & safety D, amenities F, commute F.
• North Hunterdon-Voorhees Regional High School District (suburban): math 37% / reading 63% proficiency, ranked #103 of 472 in NJ (top 22%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Valley View School (math 37% / reading 47%, grade F, #422 of 1,303 statewide, top 35%, 290 students, 7% FRL); Woodglen School (math 29% / reading 61%, grade D, #147 of 431 statewide, top 35%, 292 students, 8% FRL); Voorhees High School (math 36% / reading 57%, grade D-, #129 of 399 statewide, top 33%, 672 students, 5% FRL).
• Watch-outs: property tax is 3.1% of price; flood insurance adds $66/mo.
• Market conditions: 1 active listings in the ZIP; 389 units permitted in Hunterdon County in 2024 (180 in 5+ unit buildings).
• Hunterdon County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $20k cash investment doubles in ~4 years — after that, you're playing with house money.
• Climate carrying-cost: severe flood risk — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 55 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Built in 1963 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.