354-356 S Main St

Williamstown, NJ 08094

$397,475D+

8 bd · 0.0 ba · — sqft · Built 1920 · MultiFamily · Active · 756 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,795/mo
• Mortgage (P&I): −$2,084
• Tax + insurance: −$662
• HOA: −$0
• Vac / Maint / Mgmt: −$797
• Net cashflow: $251/mo
• Annual: $3,014/yr
• Cap rate: 7.05%
• Cash-on-cash: 2.71%
• DSCR: 1.12
• 1% rule: 0.95%
• Cash to close: $111,293

Investor read

• This is a 2 × 1-bed/1.0-bath units multifamily listed at $397k.
• At list price, monthly cash flow is $251 ($3k/yr) — positive. Per door: $126/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $380k (4.5% below list).
• It's been on market 756 days — a 12% lower offer ($350k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $350k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $12k of value loss. Plan a longer hold.
• Location reads 69/100 on livability (#289 in NJ) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+; Watch: cost of living D+, amenities F, commute F.
• Monroe Township Public School District (suburban): math 20% / reading 45% proficiency, ranked #302 of 472 in NJ (top 64%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: built in 1920 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 270 active listings in the ZIP; solid renter incomes; 1,047 units permitted in Gloucester County in 2024 (183 in 5+ unit buildings).
• Gloucester County population projected to shrink 5% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 3 sale attempts since 2y ago; this cycle's ask is 32347% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Cap rate 7.1% vs local median 4.9% in Williamstown — 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 $3,795/mo this rent would consume 47% of the median local household income ($97k/yr) (locally 721% 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 756 days. Have you received any prior offers? Is the seller open to a 12% 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?
• Built in 1920 — 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.
• 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.