Duplex COC Return discussion

[Joseph Kirk]

What is everyone's thoughts on a turnkey duplex providing a 12% COC return? however, that is not allocating anything to capex, maintenance and vacancy. if we allocate 3% to each, the COC return is 7.97%.

Is this a good investment? Any input appreciated. It’s located in Blackwood, NJ. A good area.

[Benjamin Aaker]

Hard to answer without all the numbers.

Try stress testing it with 5% to capex, 5% to maintenance, and 8% to vacancy. Those numbers are more realistic for a duplex. If it still works for you at those levels, then the deal seems better. Unfortunately, I think you'll have a slim margin.