12 bd · 4.0 ba ·
— sqft ·
Built —
· MultiFamily
· Active
· 1 DOM
Cashflow @ list (25.0% down · 7.5%)
Estimated rent
$10,811/mo
Mortgage (P&I)
−$4,851
Tax + insurance
−$1,542
HOA
−$0
Vac / Maint / Mgmt
−$2,270
Net cashflow
$2,148/mo
Annual
$25,779/yr
Cap rate
9.08%
Cash-on-cash
9.95%
DSCR
1.44
1% rule
1.17%
Cash to close
$259,000
Investor read
This is a 4 × 3-bed/1.0-bath units multifamily listed at $925k.
At list price, monthly cash flow is $2k ($26k/yr) — positive. Per door: $537/mo.
The deal already cash-flows at list — no discount required.
Meets the 1% rule at list price ($11k rent vs $925k).
Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
Local home prices are declining (-3.0%/yr); year-one equity from $6k of loan paydown is wiped out by about $28k of value loss. Plan a longer hold.
Location reads 77/100 on livability (#116 in NJ, #2,955 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, employment A+; Watch: crime F, cost of living F.
Jersey City Public Schools (urban): math 16% / reading 38% proficiency, ranked #369 of 472 in NJ (top 78%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 69% free/reduced lunch — lower-income household profile, screen leases tightly.
Zoned schools: Ollie Culbreth Jr. School (math 3% / reading 17%, grade F, #1,225 of 1,303 statewide, top 95%, 422 students, 67% FRL); Academy I (math 60% / reading 76%, grade A-, #14 of 431 statewide, top 3%, 403 students, 46% FRL); Lincoln High School (math 4% / reading 25%, grade F, #389 of 399 statewide, top 98%, 942 students, 62% FRL).
Market conditions: Rents rising (+1.6%/yr); 249 active listings in the ZIP; solid renter incomes; 5,310 units permitted in Hudson County in 2024 (4,154 in 5+ unit buildings).
Hudson County population projected at +29% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
Cap rate 9.1% vs local median 1.8% in Jersey 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 $10,811/mo this rent would consume 170% of the median local household income ($77k/yr) (locally 4975% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.
Questions for listing agent
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?
Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
Schools are B-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?
Crime grade is F 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?
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.
CashFlowRE · CFR-7SM6SZDYKJYC0B
· Data 3 weeks agocashflowre.app · 2026-05-29