131 E Cliff St #4

Somerville, NJ 08876-2405

$1,150,000F

6 bd · 5.0 ba · 3,845 sqft · Built 1915 · MultiFamily · Under Contract · 11 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,416/mo
• Mortgage (P&I): −$6,031
• Tax + insurance: −$1,917
• HOA: −$0
• Vac / Maint / Mgmt: −$297
• Net cashflow: $-6,828/mo
• Annual: $-81,941/yr
• Cap rate: -0.83%
• Cash-on-cash: -25.45%
• DSCR: -0.13
• 1% rule: 0.12%
• Cash to close: $322,000

Investor read

• This is a 6-bed/5.0-bath multifamily listed at $1.15M. Condition is rated fair.
• At list price, monthly cash flow is $-7k ($-82k/yr) — negative.
• To cash-flow at today's rent, offer at most $162k (85.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $142k (87.7% below list).
• Only 11 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $142k (87.7% below list) — sets the bar for 1% rule.
• In year one you build about $42k of equity ($8k loan paydown + $34k appreciation (3.0% local appreciation)).
• Location reads 84/100 on livability (#31 in NJ, #782 nationally) — a professional / high-income tenant draw. Strengths: crime A+, employment A+, housing A+; Watch: commute C-, cost of living F.
• Somerville Public School District (suburban): math 19% / reading 49% proficiency, ranked #283 of 472 in NJ (top 60%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Van Derveer Elementary School (math 14% / reading 45%, grade F, #731 of 1,303 statewide, top 59%, 717 students, 40% FRL); Somerville Middle School (math 13% / reading 46%, grade F, #316 of 431 statewide, top 74%, 341 students, 40% FRL); Somerville High School (math 27% / reading 56%, grade F, #177 of 399 statewide, top 45%, 1,109 students, 16% FRL) — zoned schools at 32% FRL track the district average.
• Watch-outs: built in 1915 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 1 active listings in the ZIP; 678 units permitted in Somerset County in 2024 (296 in 5+ unit buildings).
• Somerset County population projected at +13% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• By year 2, paydown + projected appreciation supports a ~$69k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major flood risk; 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.

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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1915 — 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.

Repairs flagged (vision-AI assessment)

• Major: kitchen cabinets — dated and in poor condition
• Major: bathroom fixtures — dated and possibly in need of replacement
• Minor: landscaping — overgrown areas need trimming