5 W Main St

Freehold, NJ 07728

$4,000D

None bd · None ba · 1,500 sqft · Built — · MultiFamily · Active · 13 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,150/mo
• Mortgage (P&I): −$21
• Tax + insurance: −$7
• HOA: −$0
• Vac / Maint / Mgmt: −$872
• Net cashflow: $3,251/mo
• Annual: $39,010/yr
• Cap rate: 981.55%
• Cash-on-cash: 3483.06%
• DSCR: 155.98
• 1% rule: 103.75%
• Cash to close: $1,120

Investor read

• This is a multifamily listed at $4k.
• At list price, monthly cash flow is $3k ($39k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($4k rent vs $4k).
• Only 13 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $28 of loan paydown is wiped out by about $120 of value loss. Plan a longer hold.
• Location reads 61/100 on livability (#465 in NJ) — a middle-class / working-renter tenant base. Strengths: crime B, housing B; Watch: schools C-, amenities F, commute D-.
• Freehold Borough School District (suburban): math 12% / reading 31% proficiency, ranked #416 of 472 in NJ (top 88%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 63% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: Rents rising (+1.2%/yr); 321 active listings in the ZIP; 7 comparable units currently listed for rent nearby; rentals leasing fast (median 2d on market — plan ~1-2 weeks tenant-placement turnaround); high-income renter base; 2,840 units permitted in Monmouth County in 2024 (484 in 5+ unit buildings).
• Monmouth County population projected at -11% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 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.
• At projected returns (-3.0% appreciation + 1.2% rent growth), your $1k cash investment doubles in ~1 year — after that, you're playing with house money.
• Cap rate 981.5% vs local median 2.9% in Freehold — 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.
• This rent runs 44% of the median local income ($114k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• 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 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.