366 8TH St

Jersey City, NJ 07302

$1,899,000C

16 bd · 18.0 ba · — sqft · Built — · MultiFamily · Under Contract · 34 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $21,292/mo
• Mortgage (P&I): −$9,959
• Tax + insurance: −$3,165
• HOA: −$0
• Vac / Maint / Mgmt: −$4,471
• Net cashflow: $3,697/mo
• Annual: $44,365/yr
• Cap rate: 8.63%
• Cash-on-cash: 8.34%
• DSCR: 1.37
• 1% rule: 1.12%
• Cash to close: $531,720

Investor read

• This is a 4 × 4-bed/4.5-bath units multifamily listed at $1.90M. Condition is rated poor.
• At list price, monthly cash flow is $4k ($44k/yr) — positive. Per door: $924/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($21k rent vs $1.90M).
• It's been on market 34 days — a 3% lower offer ($1.84M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.84M (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $13k of loan paydown is wiped out by about $57k 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.
• Market conditions: Rents rising (+3.4%/yr); 383 active listings in the ZIP; 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.
• 6 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.
• Cap rate 8.6% vs local median 1.8% in Jersey 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.
• At $21,292/mo this rent would consume 146% of the median local household income ($175k/yr) (locally 2672% 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 34 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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: roof — The roof appears to be old and possibly leaking.
• Major: exterior siding — The exterior siding is in poor condition, with visible wear and tear.
• Major: exterior paint — The exterior paint is peeling and in poor condition.
• Major: landscaping — The landscaping is overgrown and in poor condition, with no visible curb appeal or maintenance.
• Major: interior walls/paint — The condition of the exterior suggests the interior may also be in poor condition, with no visible walls or paint in the photos.
• Major: systems — The condition of the exterior suggests the interior may also be in poor condition, with no visible systems in the photos.