1907 Central Ave

West Belmar, NJ 07719

$399,900C-

2 bd · 1.0 ba · 716 sqft · Built 1940 · SingleFamily · Pending · 6 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,332/mo
• Mortgage (P&I): −$2,097
• Tax + insurance: −$579
• HOA: −$0
• Vac / Maint / Mgmt: −$700
• Net cashflow: $-43/mo
• Annual: $-521/yr
• Cap rate: 6.16%
• Cash-on-cash: -0.47%
• DSCR: 0.98
• 1% rule: 0.83%
• Cash to close: $111,972

Investor read

• This is a 2-bed/1.0-bath single-family listed at $400k.
• At list price, monthly cash flow is $-43 ($-521/yr) — negative.
• To cash-flow at today's rent, offer at most $392k (1.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $333k (16.7% below list).
• Only 6 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $333k (16.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $12k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#180 in NJ, #4,812 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: amenities F, commute F, cost of living F.
• Wall Township Public School District (suburban): math 36% / reading 58% proficiency, ranked #145 of 472 in NJ (top 31%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 9% free/reduced lunch — higher-income household profile.
• Zoned schools: West Belmar Elementary School (math 32% / reading 42%, grade F, #528 of 1,303 statewide, top 43%, 165 students, 34% FRL); Wall Intermediate School (math 33% / reading 58%, grade D+, #143 of 431 statewide, top 34%, 763 students, 9% FRL); Wall High School (math 32% / reading 61%, grade D-, #129 of 399 statewide, top 33%, 936 students, 10% FRL).
• Watch-outs: built in 1940 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+22.1%/yr); 90 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals leasing fast (median 9d on market — plan ~1-2 weeks tenant-placement turnaround); high-income renter base; 2,840 units permitted in Monmouth County in 2024 (484 in 5+ unit buildings).
• Monmouth County population projected at -11% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Climate carrying-cost: 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.
• This rent runs 33% of the median local income ($120k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 1940 — 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.
• 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.
• 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.