85 Powhatan Trl

Medford Lakes, NJ 08055

$675,000F

4 bd · 2.0 ba · 2,603 sqft · Built 1940 · SingleFamily · Pending · 41 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,503/mo
• Mortgage (P&I): −$3,540
• Tax + insurance: −$1,242
• HOA: −$60
• Vac / Maint / Mgmt: −$526
• Net cashflow: $-2,865/mo
• Annual: $-34,379/yr
• Cap rate: 1.20%
• Cash-on-cash: -18.19%
• DSCR: 0.19
• 1% rule: 0.37%
• Cash to close: $189,000

Investor read

• This is a 4-bed/2.0-bath single-family listed at $675k.
• At list price, monthly cash flow is $-3k ($-34k/yr) — negative.
• To cash-flow at today's rent, offer at most $231k (65.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $250k (62.9% below list).
• It's been on market 41 days — a 3% lower offer ($655k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $231k (65.8% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $20k of value loss. Plan a longer hold.
• Location reads 66/100 on livability (#348 in NJ) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: amenities F, commute F, cost of living F.
• Medford Lakes School District (suburban): math 27% / reading 56% proficiency, ranked #188 of 472 in NJ (top 40%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 2% free/reduced lunch — higher-income household profile.
• Watch-outs: built in 1940 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 180 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 27y 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 $178k; list at $675k implies a 279% gain — meaningful room to come down on a strong offer.
• Cap rate 1.2% vs local median 2.1% in Medford Lakes — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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 41 days. Have you received any prior offers? Is the seller open to a 66% concession, seller financing, or rate buy-down credit?
• Built in 1940 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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?
• 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.