🏘️ 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.

The AIMomLab

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