50 Columbia Ave

Palisades Park, NJ 07650

$1,150,000D

8 bd · 5.0 ba · — sqft · Built — · MultiFamily · Active · 223 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $8,646/mo
• Mortgage (P&I): −$6,031
• Tax + insurance: −$1,917
• HOA: −$0
• Vac / Maint / Mgmt: −$1,816
• Net cashflow: $-1,117/mo
• Annual: $-13,405/yr
• Cap rate: 5.13%
• Cash-on-cash: -4.16%
• DSCR: 0.81
• 1% rule: 0.75%
• Cash to close: $322,000

Investor read

• This is a 2 × 4-bed/2.5-bath units multifamily listed at $1.15M.
• At list price, monthly cash flow is $-1k ($-13k/yr) — negative. Per door: $-559/mo.
• To cash-flow at today's rent, offer at most $988k (14.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $865k (24.8% below list).
• It's been on market 223 days — a 12% lower offer ($1.01M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $865k (24.8% below list) — sets the bar for 1% rule.
• In year one you build about $123k of equity ($8k loan paydown + $115k appreciation (10.0% local appreciation)).
• Location reads 82/100 on livability (#48 in NJ, #1,217 nationally) — a professional / high-income tenant draw. Strengths: crime A+, amenities A+, commute A+; Watch: cost of living F.
• Palisades Park School District (suburban): math 18% / reading 37% proficiency, ranked #360 of 472 in NJ (top 76%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Lindbergh Elementary School (math 20% / reading 35%, grade F, #789 of 1,303 statewide, top 61%, 769 students, 59% FRL); Palisades Park Jr-Sr High School (math 16% / reading 40%, grade F, #304 of 399 statewide, top 77%, 745 students, 44% FRL) — zoned schools average 52% FRL vs 32% district-wide (19 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 38 active listings in the ZIP; solid renter incomes; 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.
• 4 sale attempts since 11y ago 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.
• Current owner paid $515k; list at $1.15M implies a 123% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$198k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• At $8,646/mo this rent would consume 110% of the median local household income ($95k/yr) (locally 1235% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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 223 days. Have you received any prior offers? Is the seller open to a 25% 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.
• 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.