13 Sunset Blvd

Longport, NJ 08403

$1,999,900B

4 bd · 3.0 ba · 2,623 sqft · Built 2000 · SingleFamily · Active · 62 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $29,514/mo
• Mortgage (P&I): −$10,488
• Tax + insurance: −$3,031
• HOA: −$0
• Vac / Maint / Mgmt: −$6,198
• Net cashflow: $9,797/mo
• Annual: $117,567/yr
• Cap rate: 12.43%
• Cash-on-cash: 21.91%
• DSCR: 1.97
• 1% rule: 1.48%
• Cash to close: $559,972

Investor read

• This is a 4-bed/3.0-bath single-family listed at $2.00M.
• At list price, monthly cash flow is $10k ($118k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($30k rent vs $2.00M).
• It's been on market 62 days — a 6% lower offer ($1.88M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.88M (6.0% below list) — sets the bar for market timing.
• In year one you build about $157k of equity ($14k loan paydown + $143k appreciation (7.2% local appreciation)).
• Location reads 70/100 on livability (#256 in NJ) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, health & safety A+; Watch: schools D+, amenities F, commute F.
• Watch-outs: flood insurance adds $427/mo.
• Market conditions: 2 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 672 units permitted in Atlantic County in 2024 (258 in 5+ unit buildings).
• Atlantic County population projected at -12% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 8 sale attempts since 6y ago; this cycle's ask has dropped $500k (20%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $1.45M; 38% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (7.2% appreciation + 3.0% rent growth), your $560k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$251k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); severe wind risk, 80% 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

• It's been on market 62 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.