159 Plane St

Boonton, NJ 07005-1719

$405,000D

3 bd · 2.0 ba · 1,712 sqft · Built 1910 · SingleFamily · Under Contract · 92 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,944/mo
• Mortgage (P&I): −$2,124
• Tax + insurance: −$771
• HOA: −$0
• Vac / Maint / Mgmt: −$618
• Net cashflow: $-569/mo
• Annual: $-6,833/yr
• Cap rate: 4.61%
• Cash-on-cash: -6.03%
• DSCR: 0.73
• 1% rule: 0.73%
• Cash to close: $113,400

Investor read

• This is a 3-bed/2.0-bath single-family listed at $405k.
• At list price, monthly cash flow is $-569 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $304k (24.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $294k (27.3% below list).
• It's been on market 92 days — a 9% lower offer ($369k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $294k (27.3% below list) — sets the bar for 1% rule.
• In year one you build about $15k of equity ($3k loan paydown + $12k appreciation (3.0% local appreciation)).
• Location reads 81/100 on livability (#58 in NJ, #1,511 nationally) — a professional / high-income tenant draw. Strengths: crime A+, commute A+, employment A+; Watch: cost of living F.
• Boonton Town School District (suburban): math 20% / reading 50% proficiency, ranked #255 of 472 in NJ (top 54%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: School Street School (298 students, 31% FRL); John Hill School (math 21% / reading 52%, grade F, #226 of 431 statewide, top 55%, 530 students, 36% FRL); Boonton High School (math 20% / reading 47%, grade F, #251 of 399 statewide, top 64%, 662 students, 28% FRL) — zoned schools at 31% FRL track the district average.
• Watch-outs: built in 1910 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 1 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals lingering (median 46d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 50% of comp listings sitting > 30 days — soft ceiling on asking rent; 2,357 units permitted in Morris County in 2024 (1,496 in 5+ unit buildings).
• Morris County population projected at +6% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 5 sale attempts since 10y ago; this cycle's ask is 14627% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $115k; list at $405k implies a 252% gain — meaningful room to come down on a strong offer.
• By year 3, paydown + projected appreciation supports a ~$37k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: 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

• 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 92 days. Have you received any prior offers? Is the seller open to a 27% concession, seller financing, or rate buy-down credit?
• Built in 1910 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 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.