201 Boonton Ave

Boonton, NJ 07005-1429

$1,500,000D+

12 bd · 7.2 ba · — sqft · Built 1859 · MultiFamily · Under Contract · 39 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $12,680/mo
• Mortgage (P&I): −$7,866
• Tax + insurance: −$2,500
• HOA: −$0
• Vac / Maint / Mgmt: −$2,663
• Net cashflow: $-349/mo
• Annual: $-4,188/yr
• Cap rate: 6.01%
• Cash-on-cash: -1.00%
• DSCR: 0.96
• 1% rule: 0.85%
• Cash to close: $420,000

Investor read

• This is a 4 × 3-bed/1.8-bath units multifamily listed at $1.50M. Condition is rated good.
• At list price, monthly cash flow is $-349 ($-4k/yr) — negative. Per door: $-87/mo.
• To cash-flow at today's rent, offer at most $1.45M (3.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.27M (15.5% below list).
• It's been on market 39 days — a 3% lower offer ($1.46M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.27M (15.5% below list) — sets the bar for 1% rule.
• In year one you build about $55k of equity ($10k loan paydown + $45k appreciation (3.0% local appreciation)).
• Location reads 81/100 on livability (#58 in NJ, #1,511 nationally) — a professional / high-income tenant draw. Strengths: crime A+, commute A+, employment A+; Watch: cost of living F.
• Boonton Town School District (suburban): math 20% / reading 50% proficiency, ranked #255 of 472 in NJ (top 54%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: School Street School (298 students, 31% FRL); John Hill School (math 21% / reading 52%, grade F, #226 of 431 statewide, top 55%, 530 students, 36% FRL); Boonton High School (math 20% / reading 47%, grade F, #251 of 399 statewide, top 64%, 662 students, 28% FRL) — zoned schools at 31% FRL track the district average.
• Watch-outs: built in 1859 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 1 active listings in the ZIP; 2,357 units permitted in Morris County in 2024 (1,496 in 5+ unit buildings).
• Morris County population projected at +6% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• By year 2, paydown + projected appreciation supports a ~$90k 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?
• It's been on market 39 days. Have you received any prior offers? Is the seller open to a 15% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1859 — 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.
• 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?
• 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?

Repairs flagged (vision-AI assessment)

• Minor: Kitchen countertops — The countertops appear to be in need of updating and may have some minor damage.
• Minor: Paint on interior walls — The paint on the interior walls appears to be faded and may benefit from a fresh coat.
• Moderate: HVAC system — The HVAC system appears to be in average condition, but may benefit from a professional inspection and possible maintenance.