🏘️ Hunting Down a 4-Unit Multifamily Deal in North Jersey With Just 5% Down...

🏘️ How I’m Hunting Down a 4-Unit Multifamily Deal in North Jersey With Just 5% Down... 

Trying to invest in multifamily real estate in Northern New Jersey is like trying to score front-row seats at a sold-out show — competitive, expensive, and often disappointing. But I’m not backing down.

My goal? Lock in a 4-unit property in a great school district, avoid overpriced under performers, and make the numbers work with just 5% down.

Tough? Yes.
Impossible? Not quite.

🎯 What I’m Looking For

• 4-unit multifamily property
• Located in or near top-rated school districts
• Excludes high-risk or overpriced neighborhoods
• Minimum 8% cap rate
• Minimum 10% cash-on-cash return
• Must work with 5% down financing (owner-occupied loan options are on the table)

🚧 What I’ve Found So Far

❌ High-End Towns: Beautiful, But Cash Flow Negative

Some of the most picturesque towns in the area offer gorgeous inventory — but the numbers just don’t work:

• Cap rates under 4%
• Negative monthly cash flow even before maintenance

➡ Skip. These are appreciation plays, not cash-flow deals.

⚠️ Mid-Tier Suburbs: Promising But Underperforming

There are a few properties in areas with solid rent potential and good transit, but:

• Cap rates hover around 5%–6%
• CoC return is often flat or slightly negative

➡ Watch. These deals have potential with rent bumps or value-add plays.

✅ Underrated Pockets: Real Opportunity Hides Here

In lesser-hyped, well-located towns nearby, I’m starting to see:

• Cap rates close to 6%
• Slightly positive cash flow with conservative rents
• Room to reposition or optimize management

➡ Conditional Buy. The numbers aren’t perfect, but the upside is real.

🧠 Key Takeaways

• Low down payment = high monthly debt. You need strong rental income to balance it.
• Cap rate isn't everything. If it doesn’t cash flow after financing, it’s not a win.
• School zones and investor returns often clash. The trick is finding a sweet spot.
• Creative financing or living in one unit might be the edge needed in this market.

💡 Next Moves

I’m actively searching in towns just outside the major urban centers — where multifamily homes under $900K still exist, and the rents can make them work.

To move fast, I’ve built an AI-powered deal analyzer in Google Sheets:

• Set your criteria of what you want on the return
• Plug in property price, rent, and expenses
• It instantly calculates Cap Rate, CoC, and cash flow
• Filters out anything that doesn't meet my target returns

📬 Want the Analyzer?

If you’re a fellow investor or just multifamily-curious, I’ll share the spreadsheet I use to run the numbers — no strings attached. Just drop me a quick email at aimomlabs@gmail.com and I'll send it over.

Drop a comment, send a DM, or subscribe and I’ll send it your way.

📈 Bottom Line

💰 With the right criteria and tools, it’s still possible to invest in multifamily real estate in North Jersey — even with low money down. But you have to underwrite like a pro and be ready to act fast.

Stay tuned — I’ll keep sharing deals that pass the test.