spdrun wrote:I’m in the

[an]

[quote=spdrun]I’m in the process of looking at properties in NJ, definitely buying this summer.

As far as locally to you, here’s one that went into contract recently:

http://www.sdlookup.com/MLS-140018287-202_Woodland_Pkwy_113_San_Marcos_CA_92069

Say they got full price of $140k.
Rent: $1100/mo
Insurance: $15/mo
Taxes: $140/mo
HOA: $260/mo

= 5.87% cap assuming you can keep it rented. Very close to 6%.[/quote]How did you come up with 5.87%? I thought cap rate is calculated as NOI/value of the place. Based on your number, NOI is ~$1200/year at best. $1200/140000=~0.857%. That’s assuming 100% occupancy and no maintenance. How did you come up with 5.87% cap rate?

Even when you’re talking about cash on cash ROI, $1200/28k down payment and you have 4.28% with the best assumptions. Something is not adding up.