2722 Atlantic Ave

Atlantic City, NJ 08405

$3,800,000B

None bd · None ba · 37,673 sqft · Built 1930 · MultiFamily · Active · 44 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $66,557/mo
• Mortgage (P&I): −$19,928
• Tax + insurance: −$6,381
• HOA: −$0
• Vac / Maint / Mgmt: −$13,977
• Net cashflow: $26,271/mo
• Annual: $315,257/yr
• Cap rate: 14.59%
• Cash-on-cash: 29.63%
• DSCR: 2.32
• 1% rule: 1.75%
• Cash to close: $1,064,000

Investor read

• This is a 38 × 1-bed/1-bath units multifamily listed at $3.80M.
• At list price, monthly cash flow is $26k ($315k/yr) — positive. Per door: $691/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($67k rent vs $3.80M).
• It's been on market 44 days — a 3% lower offer ($3.69M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $3.69M (3.0% below list) — sets the bar for market timing.
• In year one you build about $140k of equity ($26k loan paydown + $114k appreciation (3.0% local appreciation)).
• Location reads 55/100 on livability (#525 in NJ) — a working-class tenant base; expect higher turnover. Strengths: health & safety A; Watch: commute D, schools F, crime F.
• Atlantic City School District (urban): math 9% / reading 26% proficiency, ranked #454 of 472 in NJ (top 96%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 85% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: built in 1930 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 2 active listings in the ZIP; 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.
• Current owner paid $2.62M; 45% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $1.06M cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$228k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 14.6% vs local median 3.7% in Atlantic 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.

Questions for listing agent

• It's been on market 44 days. Have you received any prior offers? Is the seller open to a 3% 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 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.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.