222 Park Ave

East Orange, NJ 07050-4146

$999,000D

8 bd · 4.0 ba · 3,200 sqft · Built 1905 · MultiFamily · Under Contract · 90 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $8,648/mo
• Mortgage (P&I): −$5,239
• Tax + insurance: −$1,665
• HOA: −$0
• Vac / Maint / Mgmt: −$1,816
• Net cashflow: $-72/mo
• Annual: $-863/yr
• Cap rate: 6.21%
• Cash-on-cash: -0.31%
• DSCR: 0.99
• 1% rule: 0.87%
• Cash to close: $279,720

Investor read

• This is a 4 × 2-bed/1.0-bath units multifamily listed at $999k.
• At list price, monthly cash flow is $-72 ($-863/yr) — negative. Per door: $-18/mo.
• To cash-flow at today's rent, offer at most $989k (1.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $865k (13.4% below list).
• It's been on market 90 days — a 6% lower offer ($939k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $865k (13.4% below list) — sets the bar for 1% rule.
• In year one you build about $37k of equity ($7k loan paydown + $30k appreciation (3.0% local appreciation)).
• Location reads 73/100 on livability (#189 in NJ) — a middle-class / working-renter tenant base. Strengths: commute A+, health & safety A, housing A-; Watch: crime D-, amenities F, cost of living D-.
• Orange Board Of Education School District (suburban): math 10% / reading 32% proficiency, ranked #432 of 472 in NJ (top 92%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 72% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Park Avenue Elementary School (math 7% / reading 23%, grade F, #1,116 of 1,303 statewide, top 86%, 387 students, 60% FRL); Orange High School (math 12% / reading 10%, grade F, #393 of 399 statewide, top 98%, 1,265 students, 70% FRL).
• Watch-outs: built in 1905 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 1 active listings in the ZIP; 3,364 units permitted in Essex County in 2024 (2,551 in 5+ unit buildings).
• Essex County population projected at +3% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 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 + 3.0% rent growth), your $280k cash investment doubles in ~7 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$60k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 6.2% vs local median 3.0% in East Orange — 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.

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 90 days. Have you received any prior offers? Is the seller open to a 13% 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?
• Built in 1905 — 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.
• Crime grade is D 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?