All Forum Posts by: Deep Patel

@Account Closed

From my experience, Collingswood is different street by street. Odie is correct that it is quite trendy in some spots; Haddon Ave in particular has a ton of shops and attractions. The area seems pretty good and the houses are "colonial" so to speak. However, in my quick drive by the town there were some parts that were way better than others and the transition happened quite swiftly. I would definitely consider investing in the better parts, as it is a prime location to be in in South Jersey, with the Gloucester City Outlets, Cherry Hill Mall, and Deptford Mall areas being all within about fifteen minutes. If you do go there and enjoy milk shakes be sure to check out The Little Pop Shop and that area will give you an idea of what I mean by trendy. Best of luck Phillip! 

@Collin Schwartz

I would be absolutely ecstatic to both get to know some brokers and discuss RE in general in the area. I am pretty new to this scene, but I really tried to do my due diligence and will continue to do so. Appreciation is not what I am after at the moment. I am just looking for cash flow, so it seems like Midwest will be the way to go. I sent a colleague invitation as well!

@Brian Ploszay 

Thanks for all the insight! Thanks for clearing up the concerns and questions I had, I greatly appreciate it. 

@Andrew Beauchemin

Delighted to see you post. I was actually going to message you because I saw you post "I have done a few multifamily deals in PA/NJ" or something along those lines and thought you were a broker in the area. To my displeasure, you were not! Great to see the tight knit community of BP though and thanks for all the feedback directly from a commercial loan originator. If you have brokers in NJ for commercial RE please let me know. 

@Greg Downey

Thanks for the input. Any property that is a good deal and cash flows is sexy in my eyes!

I am currently trying to 1031 exchange a property in NJ that should clear upwards 400-500k that I am looking to invest in multi family in the Midwest (I believe this is the best place to invest for cash flow). I hope to use that capital as a down payment. Since this would be commercial real estate is it true that income is not essential and credit score and NOI are more important? Looking for any suggestions in multi family brokers in the Midwest. Looking forward to trying to make something work and maybe turn around life into semi retirement with such a property.

@Mateusz Prawdzik 

Pardon my ignorance, but by "The South Side" I figured you are writing about South Jersey. Is there a neighborhood called The South Side or are you simply referring to Salem, Cumberland, or Cape May counties of New Jersey, which are the South-most counties?

@Mateusz Prawdzik

What is possibly coming to South Jersey and what part of it? 

@Christopher Phillips

You're correct in that the building does not cash flow enough. It breaks even and provides minimal net income, which is not worth it in this town. 

One of the main reasons for me to 1031 exchange to a bigger building is that it is almost impossible to take all the equity out when my father's income has not been good enough the last few years. The banks are unwilling, or that would have been my first point of thought. Thus, I figure that with a 1031 exchange banks may be more willing if we put more money down and then prove that the building cash flows. Credit score is top notch as well, so with a good building investment I think we may be able to secure financing and jump start this whole process, while still allowing my father to seek small businesses. 

@Christopher Phillips 

Well it has been flowing cash positive, but the taxes in the town are insane. $18,000+ annually to be exact. Further, I am not fond of the town council nor the building department, so I just want to leave that building and town in terms of investments. 

As far as the basics of financial freedom and getting to my magic monthly gross income, I am aware of the math you showed. I guess what I am more so seeking is advice on whether to 1031 exchange for multiple single family homes, a few duplex or triplexes, or just an apartment building with 10+ units. I am currently looking at properties in the Midwest if I choose the apartment building because from what I understand that is the best cash flowing region currently. Further, I figure that with a larger building I can afford to have property management and would not have to worry about being physical present at the building very often. Of course, I am a novice in this field and am still trying to fully understand RE, which I am sure will take a few years and a few deals, so much of what I am saying and understand so far can be wrong. 

I am a mature and motivated 19 year old student who is on a mission to help my father gain FI after he has worked hard for 42 years. He is currently 53 and unemployed. However, he is currently seeking a new small business, so some source of income should be available within a year. More importantly, he owns a triplex which is now valued upwards 650k, which I want to 1031 exchange for something bigger that produces more cash flow. It should be noted, the triplex has a 200k line of credit on it. The triplex is not our current residence; we currently reside in a 350k single family house that is no where close to be paid off as we have only stayed here for six years thus far.

I am wondering what a possible path to FI would be with all this mind. I am willing to work extremely hard to help my father have a steady steam of passive income by the age of 60 -- I believe he deserves that at the very least for all the years of hard work he has put in and the outstanding life he has provided me regardless of hardships he has had to face.