230 Niles St #3

Elizabeth, NJ 07202-4076

$679,000C-

6 bd · 3.0 ba · 29,997 sqft · Built — · MultiFamily · Active · 92 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,750/mo
• Mortgage (P&I): −$3,561
• Tax + insurance: −$1,132
• HOA: −$0
• Vac / Maint / Mgmt: −$1,418
• Net cashflow: $640/mo
• Annual: $7,681/yr
• Cap rate: 7.42%
• Cash-on-cash: 4.04%
• DSCR: 1.18
• 1% rule: 0.99%
• Cash to close: $190,120

Investor read

• This is a 3 × 2-bed/1.0-bath units multifamily listed at $679k.
• At list price, monthly cash flow is $640 ($8k/yr) — positive. Per door: $213/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 $675k (0.6% below list).
• It's been on market 92 days — a 9% lower offer ($618k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $618k (9.0% below list) — sets the bar for market timing.
• In year one you build about $25k of equity ($5k loan paydown + $20k appreciation (3.0% local appreciation)).
• Location reads 69/100 on livability (#277 in NJ) — a middle-class / working-renter tenant base. Strengths: commute A+, health & safety B+; Watch: amenities D+, crime D-, cost of living F.
• Elizabeth Public Schools (suburban): math 9% / reading 33% proficiency, ranked #430 of 472 in NJ (top 91%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 74% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Nicholas S. Lacorte-Peterstown School No. 3 (math 5% / reading 21%, grade F, #1,162 of 1,303 statewide, top 90%, 807 students, 86% FRL); Elizabeth High School - Frank J Cicarell Academy (math 32% / reading 75%, grade C-, #88 of 399 statewide, top 22%, 1,281 students, 75% FRL).
• Zoned-school proficiency averages 33% at this address vs 21% district-wide (+12 pts) — the actual schools serving this property are materially stronger than the Elizabeth Public Schools average implies; a family-tenant draw the district grade alone would hide.
• Market conditions: 1 active listings in the ZIP; 1,749 units permitted in Union County in 2024 (1,421 in 5+ unit buildings).
• Union County population projected at +17% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $190k cash investment doubles in ~5 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$41k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: 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 7.4% vs local median 2.4% in Elizabeth — 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.

Questions for listing agent

• It's been on market 92 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?
• 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?
• Crime grade is D 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.