111 Chestnut St

Cherry Hill Mall, NJ 08002

$250,000F

2 bd · 2.0 ba · 1,081 sqft · Built 1969 · Condo · Active · 27 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,273/mo
• Mortgage (P&I): −$1,311
• Tax + insurance: −$417
• HOA: −$653
• Vac / Maint / Mgmt: −$477
• Net cashflow: $-585/mo
• Annual: $-7,025/yr
• Cap rate: 3.48%
• Cash-on-cash: -10.04%
• DSCR: 0.55
• 1% rule: 0.91%
• Cash to close: $70,000

Investor read

• This is a 2-bed/2.0-bath condo listed at $250k. Condition is rated fair.
• At list price, monthly cash flow is $-585 ($-7k/yr) — negative.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $227k (9.1% below list).
• It's been on market 27 days — a 2% lower offer ($246k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $227k (9.1% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#87 in NJ, #2,267 nationally) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, health & safety B+; Watch: commute F, cost of living F.
• Cherry Hill School District (suburban): math 27% / reading 59% proficiency, ranked #181 of 472 in NJ (top 38%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 14% free/reduced lunch — higher-income household profile.
• Zoned schools: Joyce Kilmer Elementary School (math 15% / reading 43%, grade F, #766 of 1,303 statewide, top 59%, 430 students, 26% FRL); John A. Carusi Middle School (math 12% / reading 51%, grade F, #289 of 431 statewide, top 69%, 841 students, 29% FRL); Cherry Hill High School West (math 11% / reading 51%, grade F, #277 of 399 statewide, top 70%, 1,355 students, 24% FRL).
• Zoned-school proficiency averages 30% at this address vs 43% district-wide (-12 pts) — the specific schools serving this property underperform the Cherry Hill School District average; the district grade overstates school quality for this exact location.
• Watch-outs: HOA is 29% of rent.
• Market conditions: Rents rising (+2.9%/yr); 101 active listings in the ZIP; 26 comparable units currently listed for rent nearby; rentals at typical pace (median 27d on market — plan ~3-4 weeks tenant-placement turnaround); 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.
• 7 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 $30k; list at $250k implies a 722% gain — meaningful room to come down on a strong offer.

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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1969 — 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?

Repairs flagged (vision-AI assessment)

• Minor: Toilet lid — Missing lid
• Moderate: Bathroom fixtures — Worn appearance