RentalCalcs Editorial · Research edition October 18, 2026
New Jersey: build a defensible buyer NOI
Property / address: ____________________ Review date: ____________
Examples below are hypothetical, not observed market rents, a quoted premium or a loan offer. Write your property values and evidence on the right. This sheet does not save inputs.
| Annual budget or acquisition line | Example | Your figure / source / date |
|---|---|---|
| Purchase price | $2,400,000 | ____________________ |
| Scheduled annual apartment rent | $316,800 | ____________________ |
| Other annual income | $4,800 | ____________________ |
| Vacancy / concessions / collection loss | $16,000 | ____________________ |
| Buyer taxes | $52,000 | ____________________ |
| Insurance | $18,000 | ____________________ |
| Owner-paid utilities | $17,000 | ____________________ |
| Recurring maintenance | $21,000 | ____________________ |
| Management | $20,000 | ____________________ |
| Administration | $9,600 | ____________________ |
| Annual NOI before reserves / debt | $168,000 | ____________________ |
| Loan principal | $1,440,000 | ____________________ |
| Annual debt service | $109,221 | ____________________ |
| Annual replacement reserve | $7,200 | ____________________ |
| Closing costs | $72,000 | ____________________ |
| Immediate capital work | $120,000 | ____________________ |
| Total invested cash | $1,152,000 | ____________________ |
Example: 12 units × $2,200 monthly × 12. Debt: 6.5% assumed, 30-year amortization. NOI $168,000 ÷ price $2,400,000 = 7.00% cap. Cash after debt and reserves $51,579 ÷ invested cash $1,152,000 = 4.48% cash-on-cash. DSCR 1.54× before / 1.47× after reserves. Verify the lender numerator.
Immediate work is capital outside NOI. Replacement reserve is deducted below NOI. Add any required initial lender reserve deposit to invested cash. Replace the $52,000 tax allowance with municipal/PILOT evidence. Test concession burn-off and lawful increases before adding rent upside; model NJ seller fees separately at exit.
Local evidence and property decisions
Taxes and exit costs
Get the municipal assessment, current rate and any PILOT or abatement agreement; verify transfer treatment. NJ’s Realty Transfer Fee and Graduated Percent Fee guidance must be applied by property class and consideration. Do not assume the former buyer-paid 1% rule is the current closing rule. Budget the seller’s applicable charges in the exit case.
Local rent rules and registration
DCA supplies landlord-tenant guidance and a rent-control survey. Obtain the actual municipal ordinance and building registration; the survey alone does not establish the parcel’s exemption or permitted increase.
Insurance
DOBI explains that standard homeowners coverage excludes flood damage. An apartment buyer needs a commercial policy review, flood quote where relevant and the actual wind/flood deductibles. The example’s premium is an assumption, not a quote.
Comparable-sale audit
| Sale / closing date | Location, units, vintage | NOI period / expense convention | Price / cap / adjustments |
|---|---|---|---|
| ____________ ____________ | ____________ ____________ | ____________ ____________ | ____________ ____________ |
| ____________ ____________ | ____________ ____________ | ____________ ____________ | ____________ ____________ |
| ____________ ____________ | ____________ ____________ | ____________ ____________ | ____________ ____________ |
Do not average incompatible rates. Identify asks, financed valuations and closed sales separately. Shared provider data is not independent confirmation.
Downside, exit and approval boundary
Value = annual NOI ÷ (cap percent ÷ 100). Total NOI growth is cumulative. Simple property value excludes debt payoff, sale costs, taxes and interim cash flows. Calculate net proceeds separately.
| Scenario | NOI / exit cap | Gross value | Net proceeds after payoff / sale costs / tax |
|---|---|---|---|
| Compression | ________ | ________ | ________ |
| Stable caps | ________ | ________ | ________ |
| Expansion + lower NOI | ________ | ________ | ________ |
What evidence would invalidate my case? __________________________
Missing documents / responsible person / deadline: __________________
Sources and dated coverage limits: vouchermatch.com/rentalcalcs/cap-rates/new-jersey#sources. Consult the report before treating a benchmark as current.