384-A Lake Shr S Unit A

Milford, PA 07827

$189,000D

2 bd · 1.0 ba · 1,144 sqft · Built 1975 · Condo · Active · 15 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,797/mo
• Mortgage (P&I): −$991
• Tax + insurance: −$315
• HOA: −$123
• Vac / Maint / Mgmt: −$377
• Net cashflow: $-10/mo
• Annual: $-116/yr
• Cap rate: 6.23%
• Cash-on-cash: -0.22%
• DSCR: 0.99
• 1% rule: 0.95%
• Cash to close: $52,920

Investor read

• This is a 2-bed/1.0-bath condo listed at $189k. Condition is rated good.
• At list price, monthly cash flow is $-10 ($-116/yr) — negative.
• To cash-flow at today's rent, offer at most $188k (0.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $180k (4.9% below list).
• It's been on market 15 days — a 2% lower offer ($186k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $180k (4.9% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#255 in PA, #2,230 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, amenities A+, health & safety A+; Watch: cost of living D+, commute F.
• Montague Township School District (rural): math 40% / reading 55% proficiency, ranked #400 of 612 in NJ (top 65%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Montague Township School (math 12% / reading 37%, grade F, #878 of 1,303 statewide, top 70%, 310 students, 32% FRL) — zoned schools at 32% FRL track the district average.
• Zoned-school proficiency averages 24% at this address vs 48% district-wide (-23 pts) — the specific schools serving this property underperform the Montague Township School District average; the district grade overstates school quality for this exact location.
• Market conditions: 184 units permitted in Sussex County in 2024 (18 in 5+ unit buildings).
• Sussex County population projected at -25% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Cap rate 6.2% vs local median 2.4% in Milford — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

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 1975 — 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?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are B-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?
• This sits on a lake — are riparian / water-frontage rights deeded with the parcel? Any dock permits, shoreline easements, or HOA water-use restrictions?