6-6A Buttonwood

Echelon, NJ 08043

$589,000D

6 bd · 3.0 ba · 2,720 sqft · Built 1976 · MultiFamily · Pending · 53 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,152/mo
• Mortgage (P&I): −$3,089
• Tax + insurance: −$982
• HOA: −$0
• Vac / Maint / Mgmt: −$1,082
• Net cashflow: $-0/mo
• Annual: $-4/yr
• Cap rate: 6.29%
• Cash-on-cash: -0.00%
• DSCR: 1.00
• 1% rule: 0.87%
• Cash to close: $164,920

Investor read

• This is a 2 × 3.0-bed/1.5-bath units multifamily listed at $589k. Condition is rated good.
• At list price, monthly cash flow is $0 ($-4/yr) — negative. Per door: $0/mo.
• To cash-flow at today's rent, offer at most $589k (0.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $515k (12.5% below list).
• It's been on market 53 days — a 3% lower offer ($571k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $515k (12.5% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $18k of value loss. Plan a longer hold.
• Location reads 76/100 on livability (#141 in NJ, #3,732 nationally) — a middle-class / working-renter tenant base. Strengths: housing A+, health & safety A, employment A-; Watch: amenities C-, commute F, cost of living F.
• Voorhees Township School District (suburban): math 38% / reading 61% proficiency, ranked #134 of 472 in NJ (top 28%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 8% free/reduced lunch — higher-income household profile.
• Zoned schools: Voorhees Middle School (math 33% / reading 64%, grade C-, #115 of 431 statewide, top 27%, 963 students, 17% FRL); Eastern Regional High School (math 42% / reading 60%, grade D+, #96 of 399 statewide, top 25%, 1,933 students, 11% FRL).
• Market conditions: Rents rising (+2.0%/yr); 143 active listings in the ZIP; 1 comparable units currently listed for rent nearby; solid renter incomes; 1,018 units permitted in Camden County in 2024 (509 in 5+ unit buildings).
• Camden County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 2 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Climate carrying-cost: major wind risk, 56% chance of damaging wind over 30y; extreme-heat days projected 7→14/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.3% vs local median 4.3% in Echelon — 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.
• At $5,152/mo this rent would consume 59% of the median local household income ($105k/yr) (locally 1415% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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 53 days. Have you received any prior offers? Is the seller open to a 13% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1976 — 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 D-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?