North Jersey Multifamily Market Analysis -12/29/2025

Based on today's NJMLS "Revised 3&4 fam no oil no flood" saved search (DOM 0–1, last 48 hours), there are 4 qualifying listings—all 2-families in Bloomfield, Newark, Irvington, and Paterson. None of the four deals deliver strong positive cash flow at 25% down / 6% interest, reinforcing the ongoing disconnect between seller pricing and current borrowing costs.

🏆 #1: IRVINGTON — 2 Units — $568,900

65 38th Street | MLS# 25043668 | DOM: 0

The Setup

Foreclosure two-family near the Maplewood border with two existing 2BR/1BA units and serious expansion potential via the walk-up attic. Both leases are expired at $1,750 per unit, leaving room to reset rents to market after renovation. Basement offers washer/dryer hookups and additional bath, plus off-street parking and a private backyard.

The Numbers

The Angle This is the only DOM 0–1 deal with real expansion upside: converting the attic into additional bedrooms/bath on the second floor can unlock a 4BR/2BA layout and meaningfully lift the rent roll. Assuming a $40K–$60K renovation budget and successful rent repositioning, the stabilized cap rate on total cost can push into the mid‑7%–8% range—rare in today's Northern NJ small-multifamily market.

The Risk Attic buildout requires permits, structural verification, and a reliable contractor; execution and timing risk are real. Taxes currently show anomalously low due to foreclosure status, so investors should underwrite a realistic post-reassessment tax bill near typical Irvington levels or risk a future NOI hit.

The Play Pursue only if you have construction bandwidth and capital reserves—this is a classic value-add where returns are earned through permitting, building, and lease-up, not day-one cash flow.

#2: BLOOMFIELD — 2 Units — $649,900

214 Ashland Avenue | MLS# 25043978 | DOM: 0

The Setup Pre-1900 two-family on a desirable Bloomfield block near Montclair and Brookdale Park, with two 3BR/1BA units plus a 3.5 bath count overall. Features include a full basement, private deck, detached heated garage, large yard, and a 4-car driveway—amenities that are hard to replicate in this submarket.

The Numbers

The Angle For an owner-occupant / house-hacker, the combination of location, parking, and garage/yard is compelling—living in one unit while renting the other meaningfully offsets the mortgage even at today's higher rates. Light-to-moderate renovations and rent pushes could take this from near-neutral to modestly positive cash flow over time.

The Risk Estate-sale, pre-1900 structure implies unknown deferred maintenance; buyers need a full inspection and realistic capex plan. The five-figure tax bill compresses NOI and leaves less room for error on future expenses.

#3: NEWARK — 2 Units — $629,000

522 Mulberry Street | MLS# 25044030 | DOM: 0

Finance-company owned two-family with a rented 2BR first-floor unit (~$2,300/mo) and a vacant, oversized 4BR+ upper unit created by combining the 2nd and 3rd floors. At ~$629K ask, the pro forma cap falls under 5% with negative cash-on-cash at 25% down, even in a strong Newark tenant pool.

#4: PATERSON — 2 Units (Lives Like 4) — $775,000

138–140 Nagle Street | DOM: 1

Legal 2-family that lives more like a 4-unit with multiple self-contained spaces (finished basement, extended-family areas, separate entrances and meters). At a mid‑$700Ks ask and a cap rate in the low‑to‑mid‑4% range, the deal is deeply negative on cash-on-cash at typical leverage.

Today's DOM 0–1 inventory (4 listings) continues the Q4 2025 pattern: compressed cap rates and negative leverage in core North Jersey small-multifamily. Broadly, regional data shows smaller multifamily cap rates hovering in the mid‑5% range while investor debt often prices higher, which is why even decent assets underwrite to thin or negative cash-on-cash.

For investors deploying capital now, patient and well-capitalized buyers who can handle renovations, tolerate short-term negative or breakeven cash flow, and negotiate price with motivated sellers will continue to have the edge.