Cloverhill Plan

West Windsor, NJ 08550

$674,995F

3 bd · 2.5 ba · 2,198 sqft · Built — · Townhouse · Active · 528 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,970/mo
• Mortgage (P&I): −$4,205
• Tax + insurance: −$1,337
• HOA: −$0
• Vac / Maint / Mgmt: −$1,044
• Net cashflow: $-1,615/mo
• Annual: $-19,384/yr
• Cap rate: 3.88%
• Cash-on-cash: -8.63%
• DSCR: 0.62
• 1% rule: 0.62%
• Cash to close: $224,532

Investor read

• This is a 3-bed/2.5-bath townhouse listed at $675k.
• At list price, monthly cash flow is $-2k ($-19k/yr) — negative.
• To cash-flow at today's rent, offer at most $568k (15.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $497k (26.4% below list).
• It's been on market 528 days — a 12% lower offer ($594k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $497k (26.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $6k of loan paydown is wiped out by about $24k of value loss. Plan a longer hold.
• Location reads: area grade F — affects rentability + tenant quality, not the cash-flow math above.
• West Windsor-Plainsboro Regional School District (suburban): math 57% / reading 71% proficiency, ranked #37 of 472 in NJ (top 8%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 3% free/reduced lunch — higher-income household profile.
• Market conditions: 103 active listings in the ZIP; 9 comparable units currently listed for rent nearby; rentals leasing fast (median 14d on market — plan ~1-2 weeks tenant-placement turnaround); 2,256 units permitted in Mercer County in 2024 (1,303 in 5+ unit buildings).
• Mercer County population projected at +4% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Climate carrying-cost: major wind risk, 27% 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

• 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 528 days. Have you received any prior offers? Is the seller open to a 26% concession, seller financing, or rate buy-down credit?
• 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.
• 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.
• 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.