1030 Old Zion Rd

Bargaintown, NJ 08234-5930

$699,900D-

4 bd · 4.0 ba · 2,622 sqft · Built 1980 · SingleFamily · Active · 18 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,840/mo
• Mortgage (P&I): −$3,670
• Tax + insurance: −$1,045
• HOA: −$0
• Vac / Maint / Mgmt: −$1,226
• Net cashflow: $-102/mo
• Annual: $-1,220/yr
• Cap rate: 6.12%
• Cash-on-cash: -0.62%
• DSCR: 0.97
• 1% rule: 0.83%
• Cash to close: $195,972

Investor read

• This is a 4-bed/4.0-bath single-family listed at $700k.
• At list price, monthly cash flow is $-102 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $682k (2.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $584k (16.6% below list).
• It's been on market 18 days — a 2% lower offer ($689k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $584k (16.6% below list) — sets the bar for 1% rule.
• In year one you build about $26k of equity ($5k loan paydown + $21k appreciation (3.0% local appreciation)).
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• Egg Harbor Township School District (suburban): math 18% / reading 46% proficiency, ranked #311 of 472 in NJ (top 66%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Clayton J. Davenport Elementary School (math 17% / reading 32%, grade F, #878 of 1,303 statewide, top 70%, 757 students, 64% FRL); Fernwood Avenue Middle School (math 13% / reading 50%, grade F, #289 of 431 statewide, top 69%, 883 students, 50% FRL); Egg Harbor Township High School (math 32% / reading 52%, grade F, #169 of 399 statewide, top 44%, 2,335 students, 47% FRL) — zoned schools average 54% FRL vs 34% district-wide (19 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 1 active listings in the ZIP; 2 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.
• 5 sale attempts since 16y ago 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.
• Current owner paid $232k; list at $700k implies a 202% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$42k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe wind risk, 80% chance of damaging wind over 30y; extreme-heat days projected 7→16/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?
• 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.