56 HAMILTON Ave #4

Fairview, NJ 07022

$1,395,000B-

28 bd · 16.0 ba · — sqft · Built — · MultiFamily · Active · 20 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $17,032/mo
• Mortgage (P&I): −$7,316
• Tax + insurance: −$2,391
• HOA: −$0
• Vac / Maint / Mgmt: −$3,577
• Net cashflow: $3,748/mo
• Annual: $44,979/yr
• Cap rate: 9.57%
• Cash-on-cash: 11.72%
• DSCR: 1.52
• 1% rule: 1.22%
• Cash to close: $390,600

Investor read

• This is a 4 × 7-bed/4.0-bath units multifamily listed at $1.40M. Condition is rated good.
• At list price, monthly cash flow is $4k ($45k/yr) — positive. Per door: $937/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($17k rent vs $1.40M).
• It's been on market 20 days — a 2% lower offer ($1.37M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.37M (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-2.1%/yr); year-one equity from $10k of loan paydown is wiped out by about $29k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#174 in NJ, #4,548 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: commute C-, schools D-, cost of living F.
• Fairview Public School District (suburban): math 6% / reading 30% proficiency, ranked #440 of 472 in NJ (top 93%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 65% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: 25 active listings in the ZIP; 3,488 units permitted in Bergen County in 2024 (1,610 in 5+ unit buildings).
• Bergen County population projected at +20% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-2.1% appreciation + 3.0% rent growth), your $391k cash investment doubles in ~9 years — after that, you're playing with house money.
• Climate carrying-cost: severe 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 9.6% vs local median 2.5% in Fairview — 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 $17,032/mo this rent would consume 321% of the median local household income ($64k/yr) (locally 1247% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• 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?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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?
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.