All Forum Posts by: Saif Mohamed

I'm looking at duplex in Newark, NJ. Purchase Price is $320k, combined rent is $3,170, assuming 8% vacancy, 5% capex, and $50/month for maintenance Managing the property myself. Cash on Cash comes out to 9.9%. Property is newly renovated. Are my capex and maintanenace assumptions too low? Also, is 9.9% cash on cash too low? Ideally i would like to get 12%+ but even this 9.9% deal was hard to find.

@David M. I've been looking since March this year. Yes, very hard to find properties that even meet the 1% rule and because of taxes you really need 1.5% to get a good return.

Hi everyone,

I've been searching for my first rental property over the past 3 months in north jersey. I'm searching through the MLS and Zillow and finding it hard to come across good deals (12%+ cash on cash return). I'm able to find a few deals at or slightly above 12% factoring in mortgage, taxes, insurance, and 1 month vacancy. However, when I factor in 10% property management, 5% capex, and 5% misc repairs that usually brings the return down to 6 to 8%. Does anyone have any advice on finding better deals in NJ? Am i overestimating the costs with capex and misc repairs especially if it's a newly renovated property? Is 12% the wrong benchmark and is 6 to 8% actually good?