(Abridged). The cataclysmic binary V405 Peg, originally discovered as ROSAT Bright Source (RBS) 1955 (= 1RXS J230949.6+213523), shows a strong contribution from a late-type secondary star in its optical spectrum, which led Schwope et al. to suggest i
t to be among the nearest cataclysmic binaries. We present extensive optical observations of V405 Peg. Time-series spectroscopy shows the orbital period, Porb, to be 0.1776469(7) d (= 4.2635 hr), or 5.629 cycle/d. We classify the secondary as M3 - M4.5. Astrometry with the MDM 2.4m telescope gives a parallax 7.2 +- 1.1 milli-arcsec, and a relative proper motion of 58 mas/yr. Our best estimate of the distance yields d = 149 (+26, -20) pc. The secondary starss radial velocity has K2 = 92 +- 3 km/s, indicating a fairly low orbital inclination if the masses are typical. Extensive I-band time-series observations in the show the system varying between a minimum brightness level of I = 14.14 and states of enhanced activity about 0.2 mag brighter. While the low-state shows an ellipsoidal modulation, an additional photometric modulation appears in the high state, with 0.1 mag amplitude and period 220-280 min. The frequency of this modulation appears to be stable for a month or so, but no single period was consistently detected from one observing season to the next. We estimate the system luminosity by combining optical measurements with the archival X-ray spectrum. The implied mass accretion rate is orders of magnitudes below the predictions for the standard angular momentum loss above the period gap. The system may possibly belong to a largely undiscovered population of hibernating CVs.
