Is 323 Atlantic Ave #323 in Atlantic City, NJ a good investment?

CashFlowRE grades it C+ with a 8.1% cap rate and $137/mo modeled cash flow at a $364,900 list price. See the full underwriting and recommended offer on the page.

What is the cap rate for 323 Atlantic Ave #323?

The modeled cap rate is 8.1% — annual NOI divided by price, using CashFlowRE's rent and expense estimates.

What would this property rent for?

Estimated market rent is $3,906/month, from CashFlowRE's rent model.

C+ Composite 61.71

Why this score? — see what drove the C+ grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

Cash flow +21.7/30.0
ARV discount +15.0/15.0
DSCR +6.9/10.0
1% rule +5.7/10.0
Condition / age +4.0/5.0
Rent growth +3.9/5.0
Livability +2.8/5.0
Schools +1.7/10.0
Appreciation +0.0/10.0

$364,900

323 Atlantic Ave #323 · Atlantic City, NJ 08401

5 bd · 2.5 ba · 2,136 sqft · SingleFamily · 174 Days on market

Built 1900 Good condition $171/sqft · 20% below area Est $458k · 20% under

🖨 Deal sheet (PDF) 📄 Offer letter ✓ Due diligence

Listing remarks

Spacious and well-maintained 5-bedroom, 2.5-bath home offering 2,136 sq ft of living space and exceptional value just minutes from the beach, boardwalk, casinos, and restaurants. Ideal for a growing family or first-time buyer, this home by the shore features a functional layout with generously sized rooms and living areas, a kitchen with ample cabinetry, a pantry, a laundry room, and a massive primary bedroom, along with abundant natural light shining through bay windows. Enjoy both a front and back porch, plus a fenced-in yard with rear parking, perfect for relaxing or entertaining.

Key facts

Recent upgrades
New doors
Ample cabinetry

What this means for you Summary

Snapshot

This is a 5-bed/2.5-bath single-family listed at $365k. Condition is rated good.

Deal economics

At list price, monthly cash flow is $137 ($2k/yr) — positive.
The deal already cash-flows at list — no discount required.
Meets the 1% rule at list price ($4k rent vs $365k).
Recommended offer: $321k (12.0% below list) — sets the bar for market timing.
Cap rate 8.1% vs local median 4.0% in Atlantic City — 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.

Location & tenants

Location reads 55/100 on livability (#525 in NJ) — a working-class tenant base; expect higher turnover. Strengths: health & safety A; Watch: commute D, crime F, amenities F.
Atlantic City School District (urban): math 9% / reading 26% proficiency, ranked #454 of 472 in NJ (top 96%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 85% free/reduced lunch — lower-income household profile, screen leases tightly.
Zoned schools: Pennsylvania Ave School (math 3% / reading 20%, grade F, #1,207 of 1,303 statewide, top 93%, 531 students, 89% FRL); Atlantic City High School (math 12% / reading 32%, grade F, #346 of 399 statewide, top 88%, 1,764 students, 80% FRL) — zoned schools at 85% FRL track the district average.
Market conditions: Rents rising fast (+5.5%/yr); 731 active listings in the ZIP; 2 comparable units currently listed for rent nearby; lower-income renter base — watch delinquency; 672 units permitted in Atlantic County in 2024 (258 in 5+ unit buildings).
At $3,906/mo this rent would consume 114% of the median local household income ($41k/yr) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $11k of value loss. Plan a longer hold.
Atlantic County population projected at -12% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.

Negotiation context

It's been on market 174 days — a 12% lower offer ($321k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

Watch-outs: flood insurance adds $427/mo; built in 1900 — expect roof / HVAC / electrical / plumbing capex.
Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); severe wind risk, 80% chance of damaging wind over 30y; extreme-heat days projected 8→18/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $321,112 (12.0% below list)

Questions for the listing agent

It's been on market 174 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
Built in 1900 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
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 F-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 F 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.
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.

Investment metrics

1% rule: 1.07% ✓
Cap rate: 8.15%
Cash-on-cash: 6.62%
DSCR: 1.29
GRM: 7.8

CMA / ARV

ARV (median comp): $458,368
List price: $364,900
Delta: -20.39%
Verdict: UNDERPRICED
Comps: 10 within 1.0 mi

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
48 W Ocean Dr	0.83mi	4/2.5 (-1)	2,078 (-3%)	2mo	$2,899,000	$1,395	54
46 N Maryland	0.41mi	4/2.5 (-1)	1,900 (-11%)	5mo	$233,500	$123	53
348 N Dr Martin Luther King Blvd	1.09mi	5/2.0	2,044 (-4%)	4mo	$285,000	$139	52
Maryland	1.09mi	4/2.5 (-1)	2,227 (+4%)	5mo	$233,500	$105	49
312 N Massachusetts Ave	0.36mi	4/3.0 (-1)	2,500 (+17%)	6mo	$325,000	$130	46
3 Bay Ct	0.99mi	4/3.0 (-1)	2,052 (-4%)	10mo	$1,320,000	$643	43
800 Adriatic Ave	0.52mi	4/2.0 (-1)	1,792 (-16%)	3mo	$298,500	$167	42
851 N Massachusetts Ave	0.72mi	4/3.5 (-1)	2,148 (+1%)	22mo	$555,000	$258	38
5201 Waterview Dr	1.00mi	4/2.5 (-1)	1,900 (-11%)	6mo	$980,000	$516	37
111 N Indiana Ave	1.07mi	4/3.0 (-1)	1,978 (-7%)	12mo	$130,000	$66	35
5211 Sea Spray Rd	0.94mi	6/3.5 (+1)	2,227 (+4%)	21mo	$825,000	$370	32
541 N New Jersey Ave	0.67mi	5/4.0	2,560 (+20%)	19mo	$685,000	$268	22

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 5.52% rent growth · sell at horizon

5-year hold

IRR: -10.4%
Equity multiple: 0.61×
Total profit: $-39,904
Equity at exit: $54,408

10-year hold

IRR: 2.6%
Equity multiple: 1.21×
Total profit: $21,697
Equity at exit: $31,550

Cash invested: $102,172 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

Overall (STATE): 21 Tenant-Leaning
State New Jersey: 21 Tenant-Leaning · D+6
County: — inherits STATE
City: — inherits STATE

Anti-eviction Act requires just-cause statewide; rent control in 100+ municipalities; one of the most tenant-friendly states.

Methodology + full state rankings →

Balanced market Market conditions within 1.0 mi — comparable homes for sale

Active competition Active MLS

For sale now: 4 active · 3 under contract
Months of supply: 6.0 mo (17%/mo absorbed)
Median asking: $412,450 ($218/sqft)
Median days on market: 89 d
This list price: 50% of active listings are priced below it
ARV vs active asking: -1.6% vs current asking $/sqft

Closed sales set the value; these active listings set current market conditions and a practical price ceiling.

ZIP-level market 08401

Home prices YoY: -7.0%
Rents YoY: 5.5%
Active inventory: 731
Price-to-rent: 7.8×

Monthly cashflow live

Estimated rent: $3,906 medium interval (Pro) →
Mortgage (P&I): −$1,914
Tax est. 1.5%: −$456 /mo · $5,474/yr
Insurance: −$152
Flood insurance flood zone: −$427 /mo · $5,118/yr
HOA: −$0
Lot rent: −$0
Vacancy / Maint / Mgmt: −$820
Net cashflow: $137

Break-even live

Break-even rent $3,732

Max offer price $364,900

Occupancy floor 91%

Sensitivity live

Price	-10% $390	-5% $264	+0% $137	+5% $11	+10% $-115
Rent	-10% $-171	-5% $-17	+0% $137	+5% $292	+10% $446
Rate	-1.0pp $321	-0.5pp $230	base $137	+0.5pp $43	+1.0pp $-53

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

Down payment: $91,225
Closing costs: $10,947
Club membership (one-time): —
Reserves months: —
Total cash needed: —

Loan-product check · same deal, 3 products live

Conventional

25% down · 7.5% · 30yr

Cash invested: —
Monthly P&I: —
Monthly cashflow: —
DSCR: —
Eligible?: —

Personal DTI + credit; lowest rate.

DSCR

20% down · 8.5% · 30yr

Cash invested: —
Monthly P&I: —
Monthly cashflow: —
DSCR: —
Eligible?: —

No personal income docs; deal must DSCR.

Hard money

10% down · 12.0% · 12mo

Cash invested: —
Monthly P&I: —
Monthly cashflow: —
DSCR: —
Eligible?: —

Short-term bridge; refi at stabilization.

Rent comps 2 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
810 Pacific Ave Unit 1358970P Atlantic City, NJ	4.0	1.0–6.0	1792	$5,119	$2.86	0d	4	0.35mi
513 Barrett Ave Unit A Atlantic City, NJ	4.0	3.5	2156	$3,500	$1.62	116d	1	0.71mi

Property features AI

Finance

Other: Property is in a federal flood zone

Exterior

Parking: Other parking type (fenced noted)
Utilities: Public waterPublic sewerElectric coolingNatural gas heating and hot water
Home design: Block constructionShingle roofOwnership: fractionalYear built: estimated
Construction: Block constructionShingle roofPartially finished basement
Exterior features: Fenced (parking listed as fenced)Not in tidal water area

Interior

Kitchen: StoveRefrigeratorMicrowaveKitchen designed for table seating
Bedrooms: Five bedrooms on the main level
Flooring: Tile/brick flooringVinyl flooringLaminate flooring
Bathrooms: Two full bathrooms and one half bathroom on the main levelTotal of two full and one half bathroom
Heating & cooling: Forced air heatingCentral air conditioning (electric)Natural gas hot water
Interior features: SkylightsDining areaKitchen with table spaceCathedral ceilingsPartially finished basement
Laundry & utility: Washer in unitDryer in unit

Listing history 50 events

2026-09-24

days on market $364,900 Active 174 DOM
2026-09-22

days on market $364,900 Active 173 DOM
2026-09-20

days on market $364,900 Active 171 DOM
2026-09-19

days on market $364,900 Active 170 DOM
2026-09-18

days on market $364,900 Active 169 DOM
2026-09-17

days on market $364,900 Active 168 DOM
2026-09-16

days on market $364,900 Active 167 DOM
2026-09-15

days on market $364,900 Active 166 DOM
2026-09-14

days on market $364,900 Active 165 DOM
2026-09-13

days on market $364,900 Active 164 DOM
2026-09-12

days on market $364,900 Active 163 DOM
2026-09-11

days on market $364,900 Active 162 DOM
2026-09-05

days on market $364,900 Active 156 DOM
2026-09-04

days on market $364,900 Active 155 DOM
2026-09-03

days on market $364,900 Active 154 DOM
2026-08-30

days on market $364,900 Active 150 DOM
2026-08-29

days on market $364,900 Active 149 DOM
2026-08-28

days on market $364,900 Active 148 DOM
2026-08-27

days on market $364,900 Active 147 DOM
2026-08-25

days on market $364,900 Active 145 DOM
2026-08-24

days on market $364,900 Active 144 DOM
2026-08-23

days on market $364,900 Active 143 DOM
2026-08-22

days on market $364,900 Active 142 DOM
2026-08-21

days on market $364,900 Active 141 DOM
2026-08-20

days on market $364,900 Active 140 DOM
2026-08-19

days on market $364,900 Active 139 DOM
2026-08-18

days on market $364,900 Active 138 DOM
2026-08-17

days on market $364,900 Active 137 DOM
2026-08-16

days on market $364,900 Active 136 DOM
2026-08-15

days on market $364,900 Active 135 DOM
2026-08-15

days on market $364,900 Active 134 DOM
2026-08-13

days on market $364,900 Active 133 DOM
2026-08-12

days on market $364,900 Active 132 DOM
2026-08-11

days on market $364,900 Active 131 DOM
2026-08-10

days on market $364,900 Active 130 DOM
2026-08-09

days on market $364,900 Active 129 DOM
2026-08-08

days on market $364,900 Active 128 DOM
2026-08-07

days on market $364,900 Active 127 DOM
2026-08-06

days on market $364,900 Active 126 DOM
2026-08-05

days on market $364,900 Active 125 DOM
2026-08-04

days on market $364,900 Active 124 DOM
2026-08-03

days on market $364,900 Active 123 DOM
2026-07-31

days on market $364,900 Active 120 DOM
2026-07-29

days on market $364,900 Active 118 DOM
2026-07-27

days on market $364,900 Active 116 DOM
2026-07-25

days on market $364,900 Active 114 DOM
2026-07-24

days on market $364,900 Active 113 DOM
2026-07-23

days on market $364,900 Active 112 DOM
2026-07-22

days on market $364,900 Active 111 DOM
2026-07-21

days on market $364,900 Active 110 DOM

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Climate risk First Street

🌊 Flood 9/10 Extreme FEMA zone AE · 99% chance over 30 yrs
🔥 Wildfire 1/10 Low
🌡 Heat 9/10 Extreme 8 d/yr ≥94°F today · 18 d/yr by 30 yrs out
💨 Wind 8/10 Severe 80% chance of damaging wind over 30 yrs
🫁 Air quality 3/10 Moderate 2 unhealthy d/yr today · 3 by 30 yrs out

Nearby sold comps map

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Walkable amenities ~0.75 mi

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Taxation est. · year 1

Rental income: $46,871
− Mortgage interest: −$20,440
− Property taxes: −$5,474
− Insurance: −$6,943
− Repairs & maintenance: −$3,750
− Management: −$3,750
− Depreciation: −$10,615
Taxable loss: −$4,100

Your marginal tax rate % combined federal + state — saved on this device

Est. tax savings @ 24.0%: +$984
After-tax cash flow: $2,633/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Condition & rehab AI · 12 photos

Good 80/100 Cosmetic rehab Est. rehab $10,680–$32,040 screening

This well-maintained 5-bedroom home offers a functional layout and is located just minutes from the beach, boardwalk, casinos, and restaurants. Recent upgrades include new windows, new doors, a newly redone front porch, and a new HVAC system.

Value-add opportunities

Both Paint the exterior siding — Enhances curb appeal and adds value ↑
Both Clean the gutters — Improves drainage and adds to the home's overall appearance ↑

ⓘ Rehab cost is a screening estimate — Cosmetic scope × the home's square footage at US $/sqft rules of thumb (the same model as the Flip Finder). Get contractor quotes + a written scope before underwriting.

F Composite school gradezoned avg 17/100

Zoned Schools

Elementary Pennsylvania Ave School F NJ #1,207/1,303 Nat'l #38,389/41,679 High Atlantic City High School F NJ #346/399 Nat'l #13,673/17,239

Schools (NCES district)

District: Atlantic City School District
NCES district ID: 3400960
Math proficiency: 9% ▼ -12.00%
Reading proficiency: 26% ▼ -6.00%
Median HH income: $27,842
Composite: 13.66/100
National rank: #9504
State rank: #454 of 472 in NJ

D Composite livability gradescore 55/100

Livability — Atlantic City

Score: 55/100
State rank: #525
US rank: #23095

Category grades

Amenities F Commute D Cost of living B- Crime F Employment F Housing F Health & safety A User ratings C+

Schools grade is shown separately in the Schools card above.

Census & demographics

Census place: Atlantic City, NJ
County: Atlantic County · 268,948 people
City population: 38,925
Metro: Atlantic City-Hammonton, NJ
Population (ZIP): 38,925
Household income: $41,126
Rent vs Own: 69.8% rent · 30.2% own
Severe rent burden: 13% of renters

Population outlook (Atlantic County) Hauer SSP2

Today (2025): 268,948 people
By 2030: 264,497 · -1.7%
By 2040: 252,261 · -6.2%
By 2050: 237,846 · -11.6%
By 2075: 210,650 · -21.7%
By 2100: 180,234 · -33.0%

Race, ethnicity, and origin ACS 2023

Neighborhood character: Highly diverse neighborhood (Simpson 0.75)
Race & ethnicity: Hispanic / Latino 32% Black 32% Asian 16% White 16% Two or more races 11% Native American 2%
Hispanic origin (detail): Mexican 10% Puerto Rican 8% Dominican 8%
Common ancestry: Romanian 1% Scotch-Irish 1%
Foreign-born: 29% · Canada, Vietnam, Jamaica
Languages at home: 52% English-only · Spanish 30% Other Indo-European 8% Vietnamese 3%

Political lean MEDSL · Atlantic

2024 margin: Toss-up / Even · D 47.7% · R 50.7% · Other 1.6%
2008→2024 swing: -18.1pp toward R · 2008: 15.1pp · 2024: -3.0pp
All cycles: 2024: R+3.0 2020: D+6.7 2016: D+6.2 2012: D+17.2 2008: D+15.1

Not yet ingested

Civics: —

Market trends

HPI YoY: ▼ -26.82%
Current HPI: 353.7827
Rent YoY: ▲ 5.52%
Metro: Atlantic City-Hammonton, NJ
State GDP YoY: ▲ 2.05%
F500 in state: 34

Industry mix (Fortune 500 HQ in NJ)

Industry	F500 HQs	Revenue
Consumer Goods	3	$31B
#281 Kenvue Skillman $15.4B #289 Campbell Soup Camden $9.6B #320 Church & Dwight Ewing $6.1B
Pharmaceuticals	2	$153B
#48 Johnson & Johnson New Brunswick $88.8B #65 Merck Rahway $64.2B
Technology	2	$21B
#216 Automatic Data Processing Roseland $19.8B #442 Commvault Systems Tinton Falls $0.9B
Insurance	2	$20B
#411 Arch Capital Group Pembroke $15.2B #459 Selective Insurance Group Branchville $4.9B
Healthcare	2	$19B
#310 Quest Diagnostics Secaucus $9.8B #400 Zoetis Parsippany $9.1B
Financial Services	1	$70B
#62 Prudential Financial Newark $70.4B

Price history

1 event — show timeline

2026-04-02 Listed $364,900 BRIGHT MLS

Cash-flow waterfall

monthly

Sold comps — $/sqft

last 12 mo · ≤1 mi

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