6 Betsy Ross Ct

Harlingen, NJ 08558-1701

$900,000D+

5 bd · 3.5 ba · 2,708 sqft · Built 1977 · SingleFamily · Under Contract · 18 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,000/mo
• Mortgage (P&I): −$4,720
• Tax + insurance: −$1,808
• HOA: −$0
• Vac / Maint / Mgmt: −$1,470
• Net cashflow: $-998/mo
• Annual: $-11,970/yr
• Cap rate: 4.96%
• Cash-on-cash: -4.75%
• DSCR: 0.79
• 1% rule: 0.78%
• Cash to close: $252,000

Investor read

• This is a 5-bed/3.5-bath single-family listed at $900k.
• At list price, monthly cash flow is $-998 ($-12k/yr) — negative.
• To cash-flow at today's rent, offer at most $724k (19.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $700k (22.2% below list).
• It's been on market 18 days — a 2% lower offer ($886k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $700k (22.2% below list) — sets the bar for 1% rule.
• In year one you build about $33k of equity ($6k loan paydown + $27k appreciation (3.0% local appreciation)).
• Location reads 64/100 on livability (#409 in NJ) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: amenities F, commute F, cost of living F.
• Montgomery Township School District (rural): math 59% / reading 71% proficiency, ranked #15 of 472 in NJ (top 3%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 3% free/reduced lunch — higher-income household profile.
• Zoned schools: Orchard Hill Elementary School (813 students, 6% FRL); Montgomery Upper Middle School (math 55% / reading 77%, grade A-, #19 of 431 statewide, top 5%, 790 students, 5% FRL); Montgomery High School (math 52% / reading 75%, grade B-, #47 of 399 statewide, top 12%, 1,603 students, 4% FRL) — zoned schools at 5% FRL track the district average.
• Market conditions: 1 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 678 units permitted in Somerset County in 2024 (296 in 5+ unit buildings).
• Somerset County population projected at +13% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts since 2y 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.
• By year 2, paydown + projected appreciation supports a ~$54k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→15/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?
• Built in 1977 — 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.
• 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.