114 Sunset Rd

Mount Royal, NJ 08061

$450,000D-

4 bd · 6.0 ba · 1,527 sqft · Built 2001 · SingleFamily · Pending · 12 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,129/mo
• Mortgage (P&I): −$2,360
• Tax + insurance: −$818
• HOA: −$0
• Vac / Maint / Mgmt: −$657
• Net cashflow: $-706/mo
• Annual: $-8,475/yr
• Cap rate: 4.41%
• Cash-on-cash: -6.73%
• DSCR: 0.70
• 1% rule: 0.70%
• Cash to close: $126,000

Investor read

• This is a 4-bed/6.0-bath single-family listed at $450k.
• At list price, monthly cash flow is $-706 ($-8k/yr) — negative.
• To cash-flow at today's rent, offer at most $325k (27.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $313k (30.5% below list).
• Only 12 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $313k (30.5% below list) — sets the bar for 1% rule.
• In year one you build about $48k of equity ($3k loan paydown + $45k appreciation (10.0% local appreciation)).
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• East Greenwich Township School District (suburban): math 38% / reading 59% proficiency, ranked #119 of 472 in NJ (top 25%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 7% free/reduced lunch — higher-income household profile.
• Zoned schools: Samuel Mickle School (math 38% / reading 59%, grade D, #294 of 1,303 statewide, top 23%, 726 students, 6% FRL); Kingsway Regional Middle School (math 27% / reading 55%, grade F, #188 of 431 statewide, top 44%, 954 students, 11% FRL); Kingsway Regional High School (math 31% / reading 51%, grade F, #180 of 399 statewide, top 46%, 1,947 students, 10% FRL) — zoned schools at 9% FRL track the district average.
• Market conditions: 20 active listings in the ZIP; 1,047 units permitted in Gloucester County in 2024 (183 in 5+ unit buildings).
• Gloucester County population projected to shrink 5% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 3 sale attempts since 5y 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 $370k; 22% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 2, paydown + projected appreciation supports a ~$77k 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?
• 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.