301 Holcombe Way

Lambertville, NJ 08530

$896,000B

3 bd · 3.0 ba · 3,478 sqft · Built 2005 · SingleFamily · Active · 58 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $20,785/mo
• Mortgage (P&I): −$4,699
• Tax + insurance: −$1,671
• HOA: −$375
• Vac / Maint / Mgmt: −$4,365
• Net cashflow: $9,676/mo
• Annual: $116,108/yr
• Cap rate: 19.25%
• Cash-on-cash: 46.28%
• DSCR: 3.06
• 1% rule: 2.32%
• Cash to close: $250,880

Investor read

• This is a 3-bed/3.0-bath single-family listed at $896k.
• At list price, monthly cash flow is $10k ($116k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($21k rent vs $896k).
• It's been on market 58 days — a 3% lower offer ($869k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $869k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $6k of loan paydown is wiped out by about $27k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#168 in NJ, #4,460 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: commute F, cost of living F.
• South Hunterdon Regional School District (rural): math 13% / reading 43% proficiency, ranked #335 of 472 in NJ (top 71%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; only 14% free/reduced lunch — higher-income household profile.
• Zoned schools: Lambertville Public School (math 17% / reading 37%, grade F, #795 of 1,303 statewide, top 64%, 221 students, 34% FRL); South Hunterdon Regional High School (math 14% / reading 42%, grade F, #304 of 399 statewide, top 77%, 417 students, 25% FRL) — zoned schools average 29% FRL vs 14% district-wide (16 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 57 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 389 units permitted in Hunterdon County in 2024 (180 in 5+ unit buildings).
• Hunterdon County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 4 sale attempts since 19y 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.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $251k cash investment doubles in ~3 years — after that, you're playing with house money.
• Climate carrying-cost: major wind risk, 27% 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.
• Cap rate 19.3% vs local median 4.6% in Lambertville — 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.

Questions for listing agent

• It's been on market 58 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.