60 Parkway Dr

East Orange, NJ 07017-4533

$199,999F

1 bd · 1.0 ba · — sqft · Built 1962 · Townhouse · Active · 66 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,792/mo
• Mortgage (P&I): −$1,049
• Tax + insurance: −$333
• HOA: −$585
• Vac / Maint / Mgmt: −$376
• Net cashflow: $-551/mo
• Annual: $-6,614/yr
• Cap rate: 2.99%
• Cash-on-cash: -11.81%
• DSCR: 0.47
• 1% rule: 0.90%
• Cash to close: $56,000

Investor read

• This is a 1-bed/1.0-bath townhouse listed at $200k. Condition is rated good.
• At list price, monthly cash flow is $-551 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $120k (39.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $179k (10.4% below list).
• It's been on market 66 days — a 6% lower offer ($188k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $120k (39.9% below list) — sets the bar for cash-flow.
• In year one you build about $7k of equity ($1k loan paydown + $6k appreciation (3.0% local appreciation)).
• Location reads 73/100 on livability (#189 in NJ) — a middle-class / working-renter tenant base. Strengths: commute A+, health & safety A, housing A-; Watch: schools C-, crime D-, amenities F.
• East Orange School District (suburban): math 6% / reading 31% proficiency, ranked #444 of 472 in NJ (top 94%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 63% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: HOA is 33% of rent.
• Market conditions: 1 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 23d on market — plan ~3-4 weeks tenant-placement turnaround); 3,364 units permitted in Essex County in 2024 (2,551 in 5+ unit buildings).
• Essex County population projected at +3% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 26 sale attempts since 13y ago; this cycle's ask has dropped $15k (7%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• By year 5, paydown + projected appreciation supports a ~$32k 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→14/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?
• It's been on market 66 days. Have you received any prior offers? Is the seller open to a 40% concession, seller financing, or rate buy-down credit?
• Built in 1962 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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.
• Crime grade is D 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?
• 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?