The Minotola Plan

Buena, NJ 08326

$267,000F

3 bd · 2.0 ba · 1,500 sqft · Built — · SingleFamily · Active · 948 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,100/mo
• Mortgage (P&I): −$1,529
• Tax + insurance: −$486
• HOA: −$0
• Vac / Maint / Mgmt: −$441
• Net cashflow: $-356/mo
• Annual: $-4,267/yr
• Cap rate: 4.83%
• Cash-on-cash: -5.23%
• DSCR: 0.77
• 1% rule: 0.72%
• Cash to close: $81,622

Investor read

• This is a 3-bed/2.0-bath single-family listed at $267k.
• At list price, monthly cash flow is $-356 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $240k (10.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $210k (21.3% below list).
• It's been on market 948 days — a 12% lower offer ($235k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $210k (21.3% below list) — sets the bar for 1% rule.
• In year one you build about $3k of equity ($2k loan paydown + $536 appreciation (0.2% local appreciation)).
• Location reads 58/100 on livability (#501 in NJ) — a working-class tenant base; expect higher turnover. Strengths: housing A+, crime A-; Watch: schools F, amenities F, commute F.
• Buena Regional School District (rural): math 11% / reading 30% proficiency, ranked #425 of 472 in NJ (top 90%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Market conditions: 15 active listings in the ZIP; 1 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.
• By year 10, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 4.8% vs local median 3.7% in Buena — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.

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 948 days. Have you received any prior offers? Is the seller open to a 21% 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.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.