rental property South Jersey (Mount Laurel/Cherry Hill NJ)

[Nadia Hale]

Hello All

we are thinking about buying a townhome in the mount laurel/cherry hill Nj area. Looking as far as Voorhees, Cinnaminson, Delran, Marlton NJ. I know it has to cash flow so I am definitely running the numbers; some of them seem to work with higher rents and even with PM, I can probably make $200-300 a month all in.

Does anyone have a perspective of investing in these areas? do they rent easily in the area? I am looking at 3 bed 2 bath. We think potentially folks who want to commute to Philly would be our target market. 

Are there any specific towns I should look at or stay away from? Any particular communities more desirable? I know these are a lot of questions -thanks so much for any information!

[Joe Martella]

I currently have 2 rentals in Cherry Hill, one is a townhouse.  Both rentals were purchased as foreclosures and before the boom we have experienced.  

Both properties rented within a week.  One tenant is going on year 3 and another just entered year 2.  

I have been looking for the next deal and the price points are just too high for me to cashflow.  

HOA fees can make or break your cashflow. HOA dues can also increase or special assessments can be assessed. As far as cashflow, I like to see more than 200 a month (depending on your price point and cash on cash return). I am cautions to use a valuation/appreciation strategy in this market. I don't think that there is a crash coming but it has to level off at some point.

I like to see a monthly cashflow of $450 or better on my properties or 20% cash on cash ROI.

Just don’t force a deal.  Establish your parameters and stick to them.  Happy investing.