955 Madison Ave #3 · Paterson, NJ 07501-3638

$689,000

6 bd · 3.0 ba · 3,506 sqft · MultiFamily · 13 Days on market

Built 1915 Good condition 3,484 sqft lot

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Why this score? — see what drove the C- grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +19.4/30.0
• ARV discount +7.5/15.0
• DSCR +6.1/10.0
• 1% rule +5.2/10.0
• Appreciation +5.0/10.0
• Condition / age +4.0/5.0
• Livability +3.5/5.0
• Rent growth +2.5/5.0
• Schools +1.3/10.0

Multi-family units

County records classify this as Multi-Family (2-4 Unit). Listing-text estimate: 3 units. confirmed

Listing remarks

Excellent opportunity for owner-occupants or investors seeking to build equity. This spacious three-family property offers approximately 3,500+ square feet of living space and features Separate Utilities, Two 3-Bedroom units, One 1-bedroom unit, a Large Unfinished basement, and 1 Car detached garage. Improvements include Three New Gas Boilers, Three New Hot Water Heaters, Two Newer kitchens, and Mostly All Newer Windows. One unit is currently occupied while two units are vacant, providing flexibility for immediate occupancy, owner occupancy, or rental income potential. While the property may require some TLC and updating, it presents an excellent opportunity for cash buyers, contractors, in

Key facts

• Two newer kitchens
• 3,484 sq ft lot
• Garage

Tags

• LARGE UNFINISHED BASEMENT
• THREE NEW GAS BOILERS
• THREE NEW HOT WATER HEATERS
• TWO NEWER KITCHENS
• MOSTLY ALL NEWER WINDOWS

Property features AI

Finance

• Financial info: Property configured as a 3-unit building; Reported net operating income: 0; Reported gross operating income: 0; Reported total operating expenses: 0; Unit 1 rent: $2,600 (lease through Nov 30, 2026); security deposit $2,600; Unit 2 and Unit 3 currently listed with $0 rent reported

Exterior

• Parking: Detached 1-car garage; Shared driveway
• Utilities: Public water; Public sewer; Electric service available; Natural gas available; Cable TV available; Fiber optic available
• Home design: Three-story building; Yellow/brown exterior; Aluminum and vinyl siding; Asphalt shingle roof; Approximate year built
• Construction: Aluminum siding; Vinyl siding; Asphalt shingle roof; Approximate construction year
• Exterior features: Metal and partial fencing; Sidewalk; Thermal windows and doors; Level lot; Shared driveway

Interior

• Kitchen: Units 1–3: Gas range/oven; Unit 1 & 2: Eat-in kitchen
• Bedrooms: Unit 1: 3 bedrooms; Unit 2: 3 bedrooms; Unit 3: 1 bedroom
• Flooring: Wood floors; Tile floors; Vinyl/linoleum floors
• Bathrooms: Three full bathrooms (total); Unit 1: 1 bathroom; Unit 2: 1 bathroom; Unit 3: 1 bathroom
• Heating & cooling: Steam radiators (3 heating units); Natural gas heating; Window A/C units
• Interior features: Fire extinguisher; Smoke detectors; Tile, vinyl/linoleum, and wood flooring; See remarks
• Laundry & utility: Gas water heater; Units: tenants pay electric, gas, and heat (owner pays water)

What this means for you Summary

Snapshot

• This is a 3 × 2-bed/1.0-bath units multifamily listed at $689k. Condition is rated good.

Deal economics

• At list price, monthly cash flow is $769 ($9k/yr) — positive. Per door: $256/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($7k rent vs $689k).
• Cap rate 7.6% vs local median 3.4% in Paterson — 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.

Location & tenants

• Location reads 69/100 on livability (#293 in NJ) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, health & safety A; Watch: schools D, employment D, crime F.
• Paterson Public School District (suburban): math 6% / reading 26% proficiency, ranked #458 of 472 in NJ (top 97%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 83% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 1 active listings in the ZIP; 860 units permitted in Passaic County in 2024 (614 in 5+ unit buildings).

Forward outlook

• In year one you build about $25k of equity ($5k loan paydown + $21k appreciation (3.0% local appreciation)).
• Passaic County population projected at +5% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $193k cash investment doubles in ~5 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$41k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• Only 13 days on market — expect competitive offers; lowballing is unlikely to land.

Risks & watch-outs

• Watch-outs: built in 1915 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: major flood risk; 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.

Recommended offer $689,000

Questions for the listing agent

1. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
2. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
3. Built in 1915 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
6. 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?
7. 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.
8. 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.
9. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 1.02% ✓
• Cap rate: 7.63%
• Cash-on-cash: 4.78%
• DSCR: 1.21
• GRM: 8.2

CMA / ARV

No comps found within radius.

Projected returns pro-forma

3.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 12.0%
• Equity multiple: 1.68×
• Total profit: $132,101
• Equity at exit: $309,804

10-year hold

• IRR: 14.1%
• Equity multiple: 3.08×
• Total profit: $401,854
• Equity at exit: $477,445

Cash invested: $192,920 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 21 Tenant-Leaning
• State New Jersey: 21 Tenant-Leaning · D+6
• County: — inherits STATE
• City: — inherits STATE

Anti-eviction Act requires just-cause statewide; rent control in 100+ municipalities; one of the most tenant-friendly states.

Methodology + full state rankings →

ZIP-level market 07501-3638

• Active inventory: 1
• Price-to-rent: 24.6×

Monthly cashflow live

• Estimated rent: $7,001 high
• Mortgage (P&I): −$3,613
• Tax est. 1.5%: −$861 /mo · $10,335/yr
• Insurance: −$287
• HOA: −$0
• Vacancy / Maint / Mgmt: −$1,470
• Net cashflow: $769

Break-even live

Break-even rent $6,027

Max offer price $689,000

Occupancy floor 84%

3-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
▸ 3× units	2	1	$7,002
Total (3 units)			$7,001

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $172,250
• Closing costs: $20,670
• Reserves months: —
• Total cash needed: —

Listing history 10 events

1. 2026-06-18
   days on market $689,000 Active 13 DOM
2. 2026-06-17
   days on market $689,000 Active 12 DOM
3. 2026-06-16
   days on market $689,000 Active 11 DOM
4. 2026-06-15
   days on market $689,000 Active 10 DOM
5. 2026-06-13
   days on market $689,000 Active 8 DOM
6. 2026-06-13
   days on market $689,000 Active 7 DOM
7. 2026-06-09
   days on market $689,000 Active 4 DOM
8. 2026-06-08
   days on market $689,000 Active 3 DOM
9. 2026-06-07
   remarks 699-char remark
10. 2026-06-07
    listed $689,000 Active 2 DOM

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Climate risk First Street

• 🌊 Flood 6/10 Major FEMA zone X (unshaded) · 71% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 7/10 Severe 7 d/yr ≥100°F today · 15 d/yr by 30 yrs out
• 💨 Wind 6/10 Major 27% chance of damaging wind over 30 yrs
• 🫁 Air quality 4/10 Moderate 3 unhealthy d/yr today · 5 by 30 yrs out

Taxation est. · year 1

• Rental income: $84,012
• − Mortgage interest: −$38,595
• − Property taxes: −$10,335
• − Insurance: −$3,445
• − Repairs & maintenance: −$6,721
• − Management: −$6,721
• − Depreciation: −$20,044
• Taxable loss: −$1,848
• Est. tax savings @ 24.0%: +$444
• After-tax cash flow: $9,675/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Condition & rehab AI · 14 photos

Good 80/100 Cosmetic rehab

This three-family property is in good condition with recent updates, making it a solid investment opportunity for both resale and rental.

Value-add opportunities

• Both Painting and updating the exterior siding — Enhances curb appeal and can increase both resale and rental value
• Both Upgrading the HVAC system — Improves comfort and energy efficiency, attracting more buyers and renters

Renovation cost estimate screening

Value-add ROI direction

• Both Painting and updating the exterior siding — Enhances curb appeal and can increase both resale and rental value ↑
• Both Upgrading the HVAC system — Improves comfort and energy efficiency, attracting more buyers and renters ↑

ⓘ Cost ranges are severity-bucket heuristics (US national rule-of-thumb). Get contractor quotes + a written scope before underwriting a rehab budget.

Schools (NCES district)

• District: Paterson Public School District
• NCES district ID: 3412690
• Math proficiency: 6% ▼ -12.00%
• Reading proficiency: 26% ▼ -4.00%
• Median HH income: $34,365
• Composite: 13.02/100
• National rank: #9568
• State rank: #458 of 472 in NJ

Livability — Paterson

• Score: 69/100
• State rank: #293
• US rank: #8763

Category grades

Amenities A+ Commute A+ Cost of living F Crime F Employment D Housing C+ Health & safety A User ratings D

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Paterson, NJ

Population outlook (Passaic County) Hauer SSP2

• Today (2025): 525,915 people
• By 2030: 532,160 · +1.2%
• By 2040: 543,670 · +3.4%
• By 2050: 554,326 · +5.4%
• By 2075: 584,728 · +11.2%
• By 2100: 598,978 · +13.9%

Not yet ingested

• Political lean: —
• Race & ethnicity: —
• Common origin: —
• Civics: —

Market trends

• HPI YoY: —
• Current HPI: —
• Rent YoY: —
• Metro: —
• State GDP YoY: ▲ 2.05%
• F500 in state: 34

Industry mix (Fortune 500 HQ in NJ)

Industry	F500 HQs	Revenue
▸Consumer Goods	3	$31B
▸Pharmaceuticals	2	$153B
▸Technology	2	$21B
▸Insurance	2	$20B
▸Healthcare	2	$19B
▸Financial Services	1	$70B

Price history

1 event — show timeline

• 2026-06-05 Listed $689,000 GSMLS