441 S Main St

Phillipsburg, NJ 08865-3030

$370,000F

5 bd · 3.5 ba · — sqft · Built 1930 · MultiFamily · Active · 21 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,355/mo
• Mortgage (P&I): −$1,940
• Tax + insurance: −$617
• HOA: −$0
• Vac / Maint / Mgmt: −$495
• Net cashflow: $-696/mo
• Annual: $-8,357/yr
• Cap rate: 4.03%
• Cash-on-cash: -8.07%
• DSCR: 0.64
• 1% rule: 0.64%
• Cash to close: $103,600

Investor read

• This is a 5-bed/3.5-bath multifamily listed at $370k. Condition is rated good.
• At list price, monthly cash flow is $-696 ($-8k/yr) — negative.
• To cash-flow at today's rent, offer at most $269k (27.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $236k (36.3% below list).
• It's been on market 21 days — a 2% lower offer ($364k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $236k (36.3% below list) — sets the bar for 1% rule.
• In year one you build about $14k of equity ($3k loan paydown + $11k appreciation (3.0% local appreciation)).
• Location reads 76/100 on livability (#135 in NJ, #3,552 nationally) — a middle-class / working-renter tenant base. Strengths: housing A+, health & safety A+, cost of living A; Watch: commute F.
• Phillipsburg School District (suburban): math 17% / reading 37% proficiency, ranked #381 of 472 in NJ (top 81%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Phillipsburg Elementary School (math 10% / reading 26%, grade F, #1,049 of 1,303 statewide, top 81%, 595 students, 75% FRL); Phillipsburg Middle School (math 10% / reading 35%, grade F, #379 of 431 statewide, top 89%, 664 students, 70% FRL); Phillipsburg High School (math 27% / reading 51%, grade F, #197 of 399 statewide, top 51%, 1,794 students, 32% FRL) — zoned schools at 59% FRL track the district average.
• Watch-outs: built in 1930 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 1 active listings in the ZIP; 7 comparable units currently listed for rent nearby; rentals leasing fast (median 4d on market — plan ~1-2 weeks tenant-placement turnaround); 630 units permitted in Warren County in 2024 (315 in 5+ unit buildings).
• Warren County population projected at -10% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• By year 3, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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 1930 — 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.
• 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 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.