51 Schley St

Newark, NJ 07112

$719,000C

9 bd · 5.1 ba · 29,997 sqft · Built 1924 · MultiFamily · Under Contract · 100 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,406/mo
• Mortgage (P&I): −$3,771
• Tax + insurance: −$1,198
• HOA: −$0
• Vac / Maint / Mgmt: −$1,555
• Net cashflow: $882/mo
• Annual: $10,583/yr
• Cap rate: 7.76%
• Cash-on-cash: 5.26%
• DSCR: 1.23
• 1% rule: 1.03%
• Cash to close: $201,320

Investor read

• This is a 2×3bd/2ba + 1×3bd/1ba units multifamily listed at $719k. Condition is rated fair.
• At list price, monthly cash flow is $882 ($11k/yr) — positive. Per door: $294/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($7k rent vs $719k).
• It's been on market 100 days — a 9% lower offer ($654k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $654k (9.0% below list) — sets the bar for market timing.
• In year one you build about $77k of equity ($5k loan paydown + $72k appreciation (10.0% local appreciation)).
• Location reads 67/100 on livability (#343 in NJ) — a middle-class / working-renter tenant base. Strengths: commute A+, amenities A-; Watch: schools D+, housing D+, crime F.
• Newark Public School District (urban): math 9% / reading 26% proficiency, ranked #452 of 472 in NJ (top 96%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 79% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: built in 1924 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+2.8%/yr); 37 active listings in the ZIP; 3,364 units permitted in Essex County in 2024 (2,551 in 5+ unit buildings).
• Essex County population projected at +3% 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.
• At projected returns (10.0% appreciation + 2.8% rent growth), your $201k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$124k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate 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.
• Cap rate 7.8% vs local median 3.0% in Newark — 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 $7,406/mo this rent would consume 153% of the median local household income ($58k/yr) (locally 2148% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 100 days. Have you received any prior offers? Is the seller open to a 9% 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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1924 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 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?

Repairs flagged (vision-AI assessment)

• Moderate: Exterior siding — Weathered and discolored, likely needs repainting or replacement.
• Minor: Kitchen cabinets — Dated appearance, could be refreshed with paint or new hardware.
• Minor: Bathroom fixtures — Standard fixtures, could be updated for a fresh look.