Garfield — 2 Units — $400,000 | 11.5% Cash Flow in an Overpriced Market

134 Orchard Street | MLS# 25043292

Today’s batch of 10 new listings is 90% overpriced—properties ranging from breakeven to underwater returns at asking. One exception: this Garfield side-by-side 2-family sitting at a $200K/door basis with an immediate 11.5% cash-on-cash return. Yes, it’s a short sale. Yes, it has liens to clear. But these return metrics don’t exist in today’s market, and the diligence is worth it.

Metric | Value

Asking | $400,000

$/Unit | $200,000

Est. Monthly Rent | $5,600

Annual Gross | $67,200

Cap Rate | 9.2%

Cash-on-Cash | 11.5%

Taxes | $9,744/yr

Low basis at $200K/door creates immediate value. Garfield 3BRs command $2,800+/month rent, meaning you’re likely conservative on income projections. The GRM of 6.0 is the best in today’s entire batch—nearly half the 12-14 GRMs plaguing the overpriced Newark new construction deals. If the short sale clears and liens resolve cleanly, you’re buying a value-add 3BR/3BR duplex at 60% of what similar units go for across Hudson County.

Short sales create timeline uncertainty. "Multiple liens" language in the listing suggests complexity that could delay closing or create surprises at title. Property condition is unknown—you’re buying "as-is," so reserve capital for whatever the inspection reveals. Bank approval isn’t guaranteed, and seller motivation may evaporate.

Navigate the short sale mechanics. If liens clear and inspections hold, this is the only deal offering true investor returns today.

1101 Bergen Ave, Linden — $824,999 — WATCH — Three units at $275K/door with 6.1% cap; verify unit legality and basement status

195 Walnut St, Newark — $879,999 — PASS — Ironbound location strong but 5.1% cap only works for owner-occupant

662-664 29th St, Paterson — $690,000 — PASS — Brutal $16K tax load ($5,333/unit) kills economics

308 Davis Ave, Harrison — $695,000 — PASS — PATH access premium doesn’t justify $11,309 annual taxes on 2-unit basis

9 Voorhees, Newark — $900,000 — WATCH — Tax abatement gold for 5 years, but $450K/door pricing requires premium rents to survive tax reset

11 Voorhees, Newark — $900,000 — WATCH — Identical twin to 9 Voorhees with same risk/reward profile

134 Knapp Ave, Clifton — $799,000 — PASS — Verified $4,900/month rent is solid but $399,500/door basis leaves zero margin

761 Hurley Pl, Fairview — $945,000 — PASS — Fully renovated but $472K/door and negative cash flow even at asking

103-107 Mt Vernon Pl, Newark — $599,000 — PASS — Negative cash-on-cash return; overpriced even for owner-occupant

Today’s fresh inventory shows a heavily overpriced market with only 1 of 10 new listings offering genuine investor returns—the Garfield short sale is the lone standout at 11.5% cash-on-cash, while everything else ranges from breakeven to underwater at asking prices. Tax burden is the silent killer across the board, with properties carrying $10K-16K annual bills that compress already-thin margins, and the two Newark new construction deals with tax abatements are the only properties where the tax story creates legitimate upside potential despite premium $450K/door pricing.

Have a deal you want me to analyze? Just reply.

— GCRE