None

East Orange, NJ 07017

$599,000F

8 bd · 3.0 ba · 2,995 sqft · Built 1925 · SingleFamily · Active · 3 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,832/mo
• Mortgage (P&I): −$3,141
• Tax + insurance: −$1,185
• HOA: −$0
• Vac / Maint / Mgmt: −$595
• Net cashflow: $-2,089/mo
• Annual: $-25,065/yr
• Cap rate: 2.11%
• Cash-on-cash: -14.94%
• DSCR: 0.34
• 1% rule: 0.47%
• Cash to close: $167,720

Investor read

• This is a 8-bed/3.0-bath single-family listed at $599k.
• At list price, monthly cash flow is $-2k ($-25k/yr) — negative.
• To cash-flow at today's rent, offer at most $230k (61.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $283k (52.7% below list).
• Only 3 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $230k (61.6% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $18k of value loss. Plan a longer hold.
• 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: crime D-, amenities F, cost of living D-.
• 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.
• Zoned schools: Mildred Barry Garvin Elementary (math 2% / reading 28%, grade F, #1,116 of 1,303 statewide, top 86%, 262 students, 61% FRL); John L. Costley Middle School (math 3% / reading 31%, grade F, #409 of 431 statewide, top 95%, 333 students, 59% FRL); East Orange Campus High School (math 4% / reading 35%, grade F, #357 of 399 statewide, top 90%, 1,748 students, 48% FRL).
• Watch-outs: built in 1925 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+2.7%/yr); 42 active listings in the ZIP; 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.
• Current owner paid $300k; list at $599k implies a 100% gain — meaningful room to come down on a strong offer.
• 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.
• Cap rate 2.1% vs local median 3.0% in East Orange — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• At $2,832/mo this rent would consume 58% of the median local household income ($59k/yr) (locally 2774% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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?
• Built in 1925 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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.