24 Franklin Pl

Summit, NJ 07901-3657

$1,688,000C

6 bd · 5.0 ba · 3,760 sqft · Built 1898 · SingleFamily · Active · 83 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $14,500/mo
• Mortgage (P&I): −$8,852
• Tax + insurance: −$2,066
• HOA: −$0
• Vac / Maint / Mgmt: −$3,045
• Net cashflow: $537/mo
• Annual: $6,440/yr
• Cap rate: 6.67%
• Cash-on-cash: 1.36%
• DSCR: 1.06
• 1% rule: 0.86%
• Cash to close: $472,640

Investor read

• This is a 6-bed/5.0-bath single-family listed at $1.69M.
• At list price, monthly cash flow is $537 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.45M (14.1% below list).
• It's been on market 83 days — a 6% lower offer ($1.59M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.45M (14.1% below list) — sets the bar for 1% rule.
• In year one you build about $62k of equity ($12k loan paydown + $51k appreciation (3.0% local appreciation)).
• Location reads 84/100 on livability (#26 in NJ, #713 nationally) — a professional / high-income tenant draw. Strengths: crime A+, amenities A+, commute A+; Watch: cost of living F.
• Summit Public School District (suburban): math 65% / reading 69% proficiency, ranked #24 of 472 in NJ (top 5%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 10% free/reduced lunch — higher-income household profile.
• Zoned schools: Lincoln-Hubbard Elementary School (math 82% / reading 82%, grade A+, #1 of 1,303 statewide, top 0%, 328 students, 3% FRL); Summit High School (math 67% / reading 68%, grade B, #34 of 399 statewide, top 8%, 1,161 students, 14% FRL) — zoned schools at 9% FRL track the district average.
• Watch-outs: built in 1898 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 1 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 1,749 units permitted in Union County in 2024 (1,421 in 5+ unit buildings).
• Union County population projected at +17% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Current owner paid $420k; list at $1.69M implies a 302% gain — meaningful room to come down on a strong offer.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $473k cash investment doubles in ~6 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$101k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• It's been on market 83 days. Have you received any prior offers? Is the seller open to a 14% concession, seller financing, or rate buy-down credit?
• Built in 1898 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.