119 Lakeside Blvd

Hopatcong, NJ 07843

$655,000C-

6 bd · 3.9 ba · — sqft · Built 1949 · MultiFamily · Under Contract · 18 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $8,041/mo
• Mortgage (P&I): −$3,435
• Tax + insurance: −$1,092
• HOA: −$0
• Vac / Maint / Mgmt: −$1,689
• Net cashflow: $1,826/mo
• Annual: $21,910/yr
• Cap rate: 9.64%
• Cash-on-cash: 11.95%
• DSCR: 1.53
• 1% rule: 1.23%
• Cash to close: $183,400

Investor read

• This is a 3 × 2-bed/1.3-bath units multifamily listed at $655k. Condition is rated fair.
• At list price, monthly cash flow is $2k ($22k/yr) — positive. Per door: $609/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($8k rent vs $655k).
• It's been on market 18 days — a 2% lower offer ($645k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $645k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $20k of value loss. Plan a longer hold.
• Location reads 71/100 on livability (#249 in NJ) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: amenities F, commute F, cost of living F.
• Hopatcong Borough School District (suburban): math 17% / reading 42% proficiency, ranked #322 of 472 in NJ (top 68%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; only 17% free/reduced lunch — higher-income household profile.
• Zoned schools: Hopatcong High School (math 19% / reading 48%, grade F, #251 of 399 statewide, top 64%, 520 students, 25% FRL).
• Watch-outs: built in 1949 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 8 active listings in the ZIP; 184 units permitted in Sussex County in 2024 (18 in 5+ unit buildings).
• Sussex County population projected at -25% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $183k cash investment doubles in ~10 years — after that, you're playing with house money.
• Cap rate 9.6% vs local median 0.7% in Hopatcong — 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

• 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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1949 — 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 D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.

Repairs flagged (vision-AI assessment)

• Minor: Kitchen cabinets — Dated cabinetry needs updating or replacement.
• Minor: Bathroom fixtures — Dated fixtures need updating or replacement.
• Minor: Landscaping — Overgrown areas need trimming and maintenance.