294 Governor St · Paterson, NJ 07501-1350

$799,000

8 bd · 4.0 ba · 3,344 sqft · MultiFamily · 23 Days on market

Built 1940 Good condition 5,662 sqft lot

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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 +18.4/30.0
• ARV discount +7.5/15.0
• DSCR +5.8/10.0
• Appreciation +5.0/10.0
• 1% rule +4.9/10.0
• Condition / age +3.8/5.0
• Livability +3.5/5.0
• Rent growth +2.5/5.0
• Schools +1.3/10.0

Multi-family units

County records classify this as Multi-Family (2-4 Unit). Listing-text estimate: 4 units. confirmed

Listing remarks

Investment opportunity in the heart of Paterson. This brick four-family building features four units, each offering 2 bedrooms and 1 full bathroom with an open-concept living room and kitchen layout. Each unit includes wood flooring, granite countertops, and updated cabinetry, along with pantry storage and additional closets. The property offers off-street parking on one side for up to four vehicles (or shared use), with additional space on the opposite side that may allow for future parking expansion. The building does require some updates and improvements, making it ideal for an investor or buyer looking to add value and increase returns. With the right vision and upgrades, this property

Key facts

• Off street parking
• Pantry storage
• Granite countertops

Tags

• OPEN CONCEPT LIVING ROOM
• GRANITE COUNTERTOPS
• UPDATED CABINETRY
• PANTRY STORAGE
• OFF STREET PARKING
• FUTURE PARKING EXPANSION

Property features AI

Finance

• Financial info: Property configured as 4 units; Reported net operating income: 0; Reported gross operating income: 0; Reported total operating expenses: 0; Expenses listed as including cold water and taxes; Sample rents provided for units 2–4: $1,750; $1,800; $1,750 (unit 1 rent not shown)

Exterior

• Parking: Four parking spaces; Blacktop driveway with 2-car width; Off-street parking and on-street parking available
• Utilities: Electric service; Natural gas available; Public water; Public sewer
• Home design: Fourplex; Brick and vinyl siding exterior; Built-up and flat roof; Building color: brick
• Construction: Approximate year built; Brick and vinyl siding construction
• Exterior features: Sidewalk; Level lot

Interior

• Kitchen: Range/oven - gas (units 1–4); Refrigerator (units 1–4)
• Bedrooms: Four units each with 2 bedrooms (unit-level details listed separately)
• Bathrooms: Four full bathrooms (one per unit)
• Heating & cooling: Baseboard hot water heating; Natural gas heating; 4 separate heating units
• Interior features: Carbon monoxide detector; Smoke detector; Fire extinguisher; Gas water heater
• Laundry & utility: Tenant pays electric, gas, and heat for each unit; owner pays water

What this means for you Summary

Snapshot

• This is a 4 × 2-bed/1.0-bath units multifamily listed at $799k. Condition is rated good.

Deal economics

• At list price, monthly cash flow is $749 ($9k/yr) — positive. Per door: $187/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 $794k (0.7% below list).
• Recommended offer: $787k (1.5% below list) — sets the bar for market timing.
• Cap rate 7.4% vs local median 3.4% in Paterson — 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 69/100 on livability (#293 in NJ) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, health & safety A; Watch: schools D, employment D, crime F.
• Paterson Public School District (suburban): math 6% / reading 26% proficiency, ranked #458 of 472 in NJ (top 97%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 83% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 1 active listings in the ZIP; 860 units permitted in Passaic County in 2024 (614 in 5+ unit buildings).

Forward outlook

• In year one you build about $29k of equity ($6k loan paydown + $24k appreciation (3.0% local appreciation)).
• Passaic County population projected at +5% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $224k cash investment doubles in ~6 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$48k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• It's been on market 23 days — a 2% lower offer ($787k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Watch-outs: built in 1940 — expect roof / HVAC / electrical / plumbing capex.
• 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.

Recommended offer $787,015 (1.5% below list)

Questions for the listing agent

1. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
2. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
3. Built in 1940 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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?
6. 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?
7. 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.
8. 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.
9. 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.

Investment metrics

• 1% rule: 0.99% ✗
• Cap rate: 7.42%
• Cash-on-cash: 4.02%
• DSCR: 1.18
• GRM: 8.4

CMA / ARV

No comps found within radius.

Projected returns pro-forma

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

5-year hold

• IRR: 11.3%
• Equity multiple: 1.64×
• Total profit: $144,095
• Equity at exit: $359,265

10-year hold

• IRR: 13.4%
• Equity multiple: 3.00×
• Total profit: $446,370
• Equity at exit: $553,670

Cash invested: $223,720 (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 →

ZIP-level market 07501-1350

• Active inventory: 1
• Price-to-rent: 33.6×

Monthly cashflow live

• Estimated rent: $7,938 high
• Mortgage (P&I): −$4,190
• Tax est. 1.5%: −$999 /mo · $11,985/yr
• Insurance: −$333
• HOA: −$0
• Vacancy / Maint / Mgmt: −$1,667
• Net cashflow: $749

Break-even live

Break-even rent $6,990

Max offer price $799,000

Occupancy floor 86%

Sensitivity live

Price	-10% $1,301	-5% $1,025	+0% $749	+5% $473	+10% $197
Rent	-10% $122	-5% $436	+0% $749	+5% $1,063	+10% $1,376
Rate	-1.0pp $1,152	-0.5pp $953	base $749	+0.5pp $542	+1.0pp $332

4-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
▸ 4× units	2	1	$7,936
Total (4 units)			$7,938

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: $199,750
• Closing costs: $23,970
• Reserves months: —
• Total cash needed: —

Listing history 10 events

1. 2026-06-13
   statusdays on market $799,000 Under Contract 23 DOM
2. 2026-06-09
   days on market $799,000 Active 22 DOM
3. 2026-06-08
   days on market $799,000 Active 21 DOM
4. 2026-06-07
   days on market $799,000 Active 20 DOM
5. 2026-06-04
   days on market $799,000 Active 17 DOM
6. 2026-06-03
   days on market $799,000 Active 16 DOM
7. 2026-06-02
   days on market $799,000 Active 15 DOM
8. 2026-06-01
   days on market $799,000 Active 14 DOM
9. 2026-05-31
   days on market $799,000 Active 13 DOM
10. 2026-04-28
    listed $799,000 Active

ⓘ 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 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 7/10 Severe 7 d/yr ≥100°F today · 15 d/yr by 30 yrs out
• 💨 Wind 6/10 Major 27% chance of damaging wind over 30 yrs
• 🫁 Air quality 4/10 Moderate 3 unhealthy d/yr today · 5 by 30 yrs out

Taxation est. · year 1

• Rental income: $95,256
• − Mortgage interest: −$44,756
• − Property taxes: −$11,985
• − Insurance: −$3,995
• − Repairs & maintenance: −$7,620
• − Management: −$7,620
• − Depreciation: −$23,244
• Taxable loss: −$3,965
• Est. tax savings @ 24.0%: +$952
• After-tax cash flow: $9,943/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 75/100 Cosmetic rehab

This four-family brick building is in good condition with updated interiors and a good foundation. It has potential for further value through cosmetic updates and landscaping.

Value-add opportunities

• Both Painting the exterior and interior walls — Fresh paint can enhance the curb appeal and interior aesthetics, making the property more attractive to potential buyers and renters.
• Both Updating the kitchen appliances — Modernizing the kitchen appliances can improve the overall look and functionality of the space, attracting more buyers and renters.
• Both Landscaping the front yard — A well-maintained front yard can improve the property's curb appeal and make it more inviting for potential buyers and renters.

Renovation cost estimate screening

Value-add ROI direction

• Both Painting the exterior and interior walls — Fresh paint can enhance the curb appeal and interior aesthetics, making the property more attractive to potential buyers and renters. ↑
• Both Updating the kitchen appliances — Modernizing the kitchen appliances can improve the overall look and functionality of the space, attracting more buyers and renters. ↑
• Both Landscaping the front yard — A well-maintained front yard can improve the property's curb appeal and make it more inviting for potential buyers and renters. ↑

ⓘ Cost ranges are severity-bucket heuristics (US national rule-of-thumb). Get contractor quotes + a written scope before underwriting a rehab budget.

Schools (NCES district)

• District: Paterson Public School District
• NCES district ID: 3412690
• Math proficiency: 6% ▼ -12.00%
• Reading proficiency: 26% ▼ -4.00%
• Median HH income: $34,365
• Composite: 13.02/100
• National rank: #9568
• State rank: #458 of 472 in NJ

Livability — Paterson

• Score: 69/100
• State rank: #293
• US rank: #8763

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Paterson, NJ

Population outlook (Passaic County) Hauer SSP2

• Today (2025): 525,915 people
• By 2030: 532,160 · +1.2%
• By 2040: 543,670 · +3.4%
• By 2050: 554,326 · +5.4%
• By 2075: 584,728 · +11.2%
• By 2100: 598,978 · +13.9%

Not yet ingested

• Political lean: —
• Race & ethnicity: —
• Common origin: —
• Civics: —

Market trends

• HPI YoY: —
• Current HPI: —
• Rent YoY: —
• Metro: —
• State GDP YoY: ▲ 2.05%
• F500 in state: 34

Industry mix (Fortune 500 HQ in NJ)

Industry	F500 HQs	Revenue
▸Consumer Goods	3	$31B
▸Pharmaceuticals	2	$153B
▸Technology	2	$21B
▸Insurance	2	$20B
▸Healthcare	2	$19B
▸Financial Services	1	$70B

Price history

1 event — show timeline

• 2026-04-28 Listed $799,000 GSMLS