Turnkey Rooming House Income
For Sale
$850,000
196 Madison St, Passaic, NJ 07055
Turnkey, NJDCA-licensed rooming house with renovated systems and a mix of private one-bed units and rent rooms.
Property Size2,526 SF
Price / SF$336.50
Days on Market72
Property Features for 196 Madison St
General Information
Standard status
Active
Size
2,526 SF
Property subtype
Commercial
Additional Details
Business Included
Yes
Taxes and HOA fees
Annual Taxes
$14,903
Amenities
Central air
Asphalt Shingle Roof
3 Units Cooling
3 Units Heating
Corner
On-Street Parking
Building Details
Year Built
1930
Year Renovated
2020
Listing Agency:
COREY J SCHNEIDER
(973) 472-3909
Listed By:
RIGOBERTO SANCHEZ
Source:
Corcoran
Added: Jun 19
Changed: Aug 27
Last Checked: Aug 28 at 11:23AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of COREY J SCHNEIDER
Investment Insights
Based on property information with market context.
This fully renovated income property is licensed by the New Jersey Department of Community Affairs (NJDCA) as a rooming house. The building includes two one-bedroom apartments, each with its own bathroom and kitchen, plus nine rent rooms. The rent rooms share two bathrooms and a dedicated kitchenette area with a sink, countertop, and microwave. Improvements were completed through a top-to-bottom, down-to-the-studs renovation in 2020, totaling $500,000+ and including new heating, electrical, and plumbing systems, along with a new roof, windows, siding, flooring, and structural stairs. A full, unfinished basement provides space for upgraded utilities and offers storage for ongoing maintenance.
Located in Passaic, the property is described as very walkable with walkScore of 74 and somewhat bikeable with bikeScore of 46. The transitScore is listed as 44, indicating moderate access to transit.
For buyers seeking a stabilized, turn-key residential income asset, the combination of NJDCA licensing and the comprehensive 2020 capital improvements may support streamlined operations. The layout accommodates both private 1-bedroom living arrangements and shared-bath rent rooms, with a dedicated kitchenette area for the rooming configuration. An unfinished basement also supports practical maintenance and storage needs.
Located in Passaic, the property is described as very walkable with walkScore of 74 and somewhat bikeable with bikeScore of 46. The transitScore is listed as 44, indicating moderate access to transit.
For buyers seeking a stabilized, turn-key residential income asset, the combination of NJDCA licensing and the comprehensive 2020 capital improvements may support streamlined operations. The layout accommodates both private 1-bedroom living arrangements and shared-bath rent rooms, with a dedicated kitchenette area for the rooming configuration. An unfinished basement also supports practical maintenance and storage needs.
Key Highlights
- NJDCA‑licensed rooming house in Passaic with 2 one‑bedroom apartments plus 9 rent rooms
- Top‑to‑bottom $500,000+ renovation completed in 2020, including new heating, electrical, and plumbing systems
- 2020 updates also included new roof, windows, siding, flooring, and structural stairs
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$38,845
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
4.57%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$776,900
$776.9K
Cap Rate 7%
$554,929
$554.9K
Cap Rate 9%
$431,611
$431.6K
Market Conditions
NOI Build-Up for 2,526 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$75.8K $30.00/SF
− Vacancy
−$5.2K −$2.04/SF
EGI
$70.6K $27.96/SF
− OpEx
−$31.8K −$12.58/SF
NOI
$38.8K $15.38/SF
Area
Passaic County, NJ
Vacancy
6.80%
Lease Rate
$30.00 /SF/Yr
Expense Ratio
45.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$776,900
Cap Rate 7%
$554,929
Cap Rate 9%
$431,611
Alternative Uses
Best Use
Apartment 5plus
$554.9K
$485.6K – $647.4K
NOI $38,845 @ 7.0% cap · market cap 4.57%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$659.6K
$577.1K – $769.5K
NOI $46,171 @ 7.0% cap · market cap 5.43%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
3,601
Businesses Nearby
Explore this area
Business Placement
Demographics for 07055, NJ
70,518
Population
21,019
Households
3.4
Avg Household Size
32
Median Age
17%
College-Educated
67%
High-School Grad
3.1 sq mi
ZIP Area
22,748
Density / Sq Mi
$56,780
Median Household Income
$30,935
Median Earnings
$1,392
Median Rent
$406,500
Median Home Value
Market
Vacancy Rate% for Multifamily in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Turnkey, NJDCA-licensed rooming house with renovated systems and a mix of private one-bed units and rent rooms.
Where is this apartment building located?
The property is located at 196 Madison St Passaic, NJ.
What is the asking price?
The asking price for this property is $850,000.
What are key features of this property?
This property features: NJDCA‑licensed rooming house in Passaic with 2 one‑bedroom apartments plus 9 rent rooms; Top‑to‑bottom $500,000+ renovation completed in 2020, including new heating, electrical, and plumbing systems; 2020 updates also included new roof, windows, siding, flooring, and structural stairs
