At what price is this a good deal?

[Matthew H.]

Hi everyone,

I am practicing running numbers on buy and hold investments and would like your help.

Here is a duplex (two 2 bed 1 bath units) in Princeton Junction, NJ.

https://www.zillow.com/homes/for_sale/NJ/pmf,pf_pt...

Rentometer shows that a 2 bedroom unit in that area rents for an average of $1,873 per month.

Zillow shows property tax of $12,391 per year.

My question is at what purchase price would this generally be considered as a good deal?

I am more concerned with cash flow and ROI than I am with appreciation.

Using my assumptions, the property would have to be purchased for $263,803 to give a cash ROI of 10%, cap rate of 7.59%, and a cash flow per door of $283.49. Is this too conservative?