Buildings were also hit in the overnight spree, which saw police called to the scene at about 12.35am today with reports of a car on fire in Wellington Street.
The blaze was quickly put out with no injuries reported.
Police said 10 cars parked along Wellington, Tara, Fullerton, and Ocean streets had been graffitied.
The doors to a unit complex on Ocean Street were also graffitied.
Police are currently investigating and urge anybody with information or footage to contact Waverly Police Station or Crime Stoppers on 1800 333 000.
Investigators are expected to speak on the attack later this morning.
Prime Minister Anthony Albanese said the images from the scene were “disturbing” and “deeply troubling”.
“There is no place for anti-Semitism in Australia,” he said.
“Conflict overseas cannot be made a platform for prejudice at home.”
Premier Chris Minns said the antisemitic attack was “absolutely deplorable”.
“It is unacceptable, unAustralian, and it will not be tolerated,” he said.
“The Jewish community is an integral part of the wider NSW community and we are completely committed to ensuring the safety and security of Jewish people in NSW.”
Slogans painted on the cars included “F—- Israel” and “PKK coming”.
However, it has not been confirmed if the graffiti refers to the same.