718 W Side Ave

Jersey City, NJ 07306

$899,900C-

6 bd · 4.5 ba · 4,400 sqft · Built — · MultiFamily · Active · 113 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $8,257/mo
• Mortgage (P&I): −$4,719
• Tax + insurance: −$1,500
• HOA: −$0
• Vac / Maint / Mgmt: −$1,734
• Net cashflow: $304/mo
• Annual: $3,648/yr
• Cap rate: 6.70%
• Cash-on-cash: 1.45%
• DSCR: 1.06
• 1% rule: 0.92%
• Cash to close: $251,972

Investor read

• This is a 3 × 2-bed/1.5-bath units multifamily listed at $900k. Condition is rated good.
• At list price, monthly cash flow is $304 ($4k/yr) — positive. Per door: $101/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $826k (8.2% below list).
• It's been on market 113 days — a 9% lower offer ($819k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $819k (9.0% 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 77/100 on livability (#116 in NJ, #2,955 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, employment A+; Watch: crime F, cost of living F.
• Jersey City Public Schools (urban): math 16% / reading 38% proficiency, ranked #369 of 472 in NJ (top 78%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 69% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Dr. Charles P. Defuccio School (math 8% / reading 22%, grade F, #1,124 of 1,303 statewide, top 88%, 302 students, 58% FRL); Academy I (math 60% / reading 76%, grade A-, #14 of 431 statewide, top 3%, 403 students, 46% FRL); Lincoln High School (math 4% / reading 25%, grade F, #389 of 399 statewide, top 98%, 942 students, 62% FRL).
• Market conditions: Rents rising (+2.6%/yr); 358 active listings in the ZIP; 5,310 units permitted in Hudson County in 2024 (4,154 in 5+ unit buildings).
• Hudson County population projected at +29% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 6.7% vs local median 2.1% in Jersey City — 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.
• This rent per unit runs 44% of the median local income ($75k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• It's been on market 113 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• 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?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.