36 Regency Pl Unit TH - 36

Union City, NJ 07086

$2,495,000F

4 bd · 4.0 ba · — sqft · Built — · Townhouse · Active · 45 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,694/mo
• Mortgage (P&I): −$13,084
• Tax + insurance: −$4,158
• HOA: −$1,365
• Vac / Maint / Mgmt: −$986
• Net cashflow: $-14,899/mo
• Annual: $-178,785/yr
• Cap rate: -0.87%
• Cash-on-cash: -25.59%
• DSCR: -0.14
• 1% rule: 0.19%
• Cash to close: $698,600

Investor read

• This is a 4-bed/4.0-bath townhouse listed at $2.50M. Condition is rated good.
• At list price, monthly cash flow is $-15k ($-179k/yr) — negative.
• To cash-flow at today's rent, offer at most $339k (86.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $469k (81.2% below list).
• It's been on market 45 days — a 3% lower offer ($2.42M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $339k (86.4% below list) — sets the bar for cash-flow.
• In year one you build about $77k of equity ($17k loan paydown + $59k appreciation (2.4% local appreciation)).
• Location reads 77/100 on livability (#117 in NJ, #2,998 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, health & safety A; Watch: cost of living F.
• Weehawken Public School District (suburban): math 21% / reading 55% proficiency, ranked #232 of 472 in NJ (top 49%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: HOA is 29% of rent.
• Market conditions: Rents rising (+3.2%/yr); 81 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 25d on market — plan ~3-4 weeks tenant-placement turnaround); 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.
• 3 sale attempts; this cycle's ask is 19860% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• By year 3, paydown + projected appreciation supports a ~$193k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate -0.9% vs local median 2.3% in Union City — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• This rent runs 44% of the median local income ($128k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 45 days. Have you received any prior offers? Is the seller open to a 86% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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 for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.