135 MONTGOMERY St Unit 8-E1

Jersey City, NJ 07302

$455,000F

1 bd · 1.0 ba · 523 sqft · Built — · Condo · Active · 61 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,267/mo
• Mortgage (P&I): −$2,386
• Tax + insurance: −$1,185
• HOA: −$1,450
• Vac / Maint / Mgmt: −$686
• Net cashflow: $-2,440/mo
• Annual: $-29,280/yr
• Cap rate: 0.98%
• Cash-on-cash: -18.96%
• DSCR: 0.16
• 1% rule: 0.72%
• Cash to close: $127,400

Investor read

• This is a 1-bed/1.0-bath condo listed at $455k. Condition is rated good.
• At list price, monthly cash flow is $-2k ($-29k/yr) — negative.
• To cash-flow at today's rent, offer at most $102k (77.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $327k (28.2% below list).
• It's been on market 61 days — a 6% lower offer ($428k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $102k (77.6% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $14k 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: Cornelia F. Bradford School (math 72% / reading 82%, grade A, #6 of 1,303 statewide, top 1%, 962 students, 10% FRL); Middle School # 4 (math 32% / reading 54%, grade D-, #167 of 431 statewide, top 41%, 669 students, 54% FRL); James J Ferris High School (math 8% / reading 36%, grade F, #346 of 399 statewide, top 88%, 1,348 students, 59% FRL) — zoned schools average 41% FRL vs 69% district-wide (28 pts lower); this property's tenant base skews higher-income than the district average.
• Zoned-school proficiency averages 47% at this address vs 27% district-wide (+20 pts) — the actual schools serving this property are materially stronger than the Jersey City Public Schools average implies; a family-tenant draw the district grade alone would hide.
• Watch-outs: flood insurance adds $427/mo; HOA is 44% of rent.
• Market conditions: Rents rising (+3.4%/yr); 687 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals leasing fast (median 11d on market — plan ~1-2 weeks tenant-placement turnaround); 48% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 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: in FEMA flood zone AE (mandatory federal flood insurance); 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 1.0% vs local median 2.1% in Jersey City — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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 61 days. Have you received any prior offers? Is the seller open to a 78% concession, seller financing, or rate buy-down credit?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• 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?