215 N Decatur Ave

Margate City, NJ 08402

$1,649,000B

None bd · None ba · — sqft · Built — · MultiFamily · Under Contract · 424 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $57,656/mo
• Mortgage (P&I): −$8,648
• Tax + insurance: −$2,748
• HOA: −$0
• Vac / Maint / Mgmt: −$12,108
• Net cashflow: $34,152/mo
• Annual: $409,828/yr
• Cap rate: 31.15%
• Cash-on-cash: 88.76%
• DSCR: 4.95
• 1% rule: 3.50%
• Cash to close: $461,720

Investor read

• This is a multifamily listed at $1.65M. Condition is rated fair.
• At list price, monthly cash flow is $34k ($410k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($58k rent vs $1.65M).
• It's been on market 424 days — a 12% lower offer ($1.45M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.45M (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $11k of loan paydown is wiped out by about $49k of value loss. Plan a longer hold.
• Location reads 75/100 on livability (#149 in NJ, #3,893 nationally) — a middle-class / working-renter tenant base. Strengths: schools A+, crime A+, employment A+; Watch: amenities F, commute F, cost of living F.
• Margate City School District (suburban): math 50% / reading 58% proficiency, ranked #113 of 472 in NJ (top 24%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 8% free/reduced lunch — higher-income household profile.
• Market conditions: Rents rising fast (+8.9%/yr); 147 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals lingering (median 45d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 65% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 672 units permitted in Atlantic County in 2024 (258 in 5+ unit buildings).
• Atlantic County population projected at -12% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 2y ago; this cycle's ask has dropped $250k (13%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-3.0% appreciation + 8.0% rent growth), your $462k cash investment doubles in ~2 years — after that, you're playing with house money.
• Cap rate 31.1% vs local median 7.4% in Margate 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.
• At $57,656/mo this rent would consume 568% of the median local household income ($122k/yr) (locally 23% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 424 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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 A-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?
• 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 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.

Repairs flagged (vision-AI assessment)

• Major: roof — Significant damage and wear
• Major: exterior siding — Damaged and in need of replacement
• Major: flooring — Worn and uneven, needs replacement
• Major: interior walls/paint — Chipped and peeling, needs repainting
• Major: HVAC/mechanicals — No recent maintenance, likely in need of repair