All Forum Posts by: Jonathan Kim

One building just came on the market in Upper Darby, PA. My agent is listing it, 13 units 575k. I'm going pass on this. Ironically same agency as yours (KW).

44 Victory Ave, Upper Darby 19082

Thanks guys!!! BiggerPockets really is the no. 1 go to site to get in-depth answers in real estate.

So right off the bat, you should go LLC if you're planning on long term holds cause you want that layer of legal protection in case you get sued. And if I have read enough of these real-estate articles, the likelihood of you getting sued in this business is high. Enough said...

What is that old saying "you need money to make money"? Once again, it smacks me in the face. So the interest automatically jumps 6.5 for commercial verses the personal loans. Down payment requirement jumps to 25% - 30% and the frosting on the cake, the 6-12 months of reserve cash to make payments on mortgage, tax and insurance. Nice... Back to slowly saving and watching the paint dry.

Thanks to Jennifer and Thomas for your in-depth knowledge on the topic. I bought my duplex knowing that at one point I would have to get it under an LLC. I now know that the process exists but I don't want to trigger the "Acceleration Clause" and I like my 3.5%... Too much to think about.

Must be nice for those few that never needs to barrow from a bank.

Hello  BiggerPockets Community...

So I'm at the point where I am now thinking about buying a 4 family house. I purchased the duplex I'm living in now about 3 years ago. Completely run down but one side was in good condition and had a tenant. I gutted and totally renovated the other side I'm living in and saved enough for another decent size investment. I particularly enjoyed the financial bump up you get going with this investment options. Passive income, loving it! 

So in the 3 years I started down this path, I got handy enough to fix general house issues (replaced sump pump and leaky sinks and tubs), manage tenants, lease issues and with an ever realizing thought in my head that real estate is not easy. It needs to be respected and you have to be vigilant or it all can go south on you quick.  

In any case, that's my back story and now to the task at hand...

I'm looking at a Quad apartment building right now and the numbers looks right to me. The condition is okay and the roof is in good condition. I didn't see any signs of water damage or structure problems but I'm not an inspector. I'm thinking of pulling the trigger soon but I needed to consult everyone here on how should I approach this. I need suggestion on how to prepare and things to look out for and more immediately... Should I start a LLC and buy the property under the LLC name?

Thanks in advance for the advice and your time.

450k opens you up to many options. If you're looking for good cash flow, you can look at Newark and Trenton. You can go after Quads and higher in your price range but don't hope for appreciating. Ironically, going with Section 8, you get more in rent (15%-20%) but that comes with a price, specifically dealing with certain types of individuals. New Brunswick is also a good option because its a major college town but high turn overs.

Research the NJ train transit maps, and towns the stops are located in. This is a good approach.  

In regards to overall population growth, I feel that NJ is on the decline due the to the high cost of living, taxes are a big problem here and rents are no way near NY ranges so its not the easiest place to make a profit. I'm originally from NY too, Woodside Queens to be specific. I've been here in NJ about 12 years now and thinking of leaving as well.

Have you considered Northern NY? Like West Chester county and Yonkers. Reason I ask cause of the tolls. They rack up quick when you manage property in NJ and live in NY.

I'm not familiar with about Home Depot cards but I have done 2 renovations in NJ with credit cards.

I have decent credit so I have many credit cards. I charged everything on cards that rack up points quickly and then balance transfer everything to a 0% interest card. There plenty out there, research it. You'll pay the one time transfer fee of 3% but at the end of the day you pretty much financed the whole reno on zero interest. Another piece of advice is to schedule big renovations in the winter. November (black Friday), you see awesome saving on appliances and building material, even labor is cheaper. Secondly, try to do a lot of thing yourself like painting and such, things you can handle. Its good education and shifts your mind set to a "can do" attitude, which is no. 1 requirement in this business. Good luck! 

Option 1, definitely.... I did the same thing as you. Bought a duplex and started saving for the next property. Honestly, there really isn't that much to do after you move in. Unless the duplex you're buying is a wreck. Take the high paying job, deal with the crazy schedule and building up your real-estate portfolio.

@Ryan D. hahaha.... my thoughts exactly.

Welcome Darren, you've come to the right place. Lots of helpful folks on this site.

Thank Travis! Now you see why I have these 2 options.

Thanks guys for your insight. I got a second question for you folks that are in mortgage industry. I was recently told by an agent that banks are not interested in financing properties in the 50k range.

Is that a correct assessment?