I have one investment property in Graduate Hospital, Philadelphia and am in process of renovating my personal residence in Haddonfield, NJ.
Once our renovations are complete our goal is to refinance at a higher appraised value and use those funds to invest in a multifamily property in South Jersey preferably in the 250k-450k range.
For anyone focused on investing in multifamily in south jersey, what towns have you had most success in? Ive been focused on Collingswood, Haddon Township and Audubon given I’m more familiar with those areas, however looking to broaden the search to other (potentially cheaper) areas.
Hey Andrew, I've bought in Audubon and Mt. Ephraim, and Glassboro. If you want another cheaper good rental market, I would look to Vineland area.
@Kevin Santos Thanks Kevin! Definitely will look into Vineland as well.
@Andrew Spinelli . Just a heads up.. if your thinking of looking in Vineland.. make sure you check with the zoning office.. cause they're trying to reduce the number of multifamily properties in the area.
Hi @Andrew Spinelli, have you prequalified for a LLC loan based on credit and potential debt service of the subject property or looking to purchase in the personal name and looking at your global debt service?
That will direct what you can afford and what community you can focus in on.
@Skip Dell good to know - thanks Skip. I see you’re from Vineland - have you had success investing there in the past? other markets in SJ?
@Joseph Scorese thanks joe - definitely agree what we can afford should dictate markets we should consider.
since this will be only our third property and second investment property we haven't crossed the bridge of establishing an LLC yet. I've heard it can be more difficult to obtain financing on multifamily when the LLC is the purchaser. Curious to hear any thoughts you may have on setting up and LLC / lending to an LLC for a multifamily purchase? Definitely see the positives of setting up the LLC in the future.
We are planning on getting prequalified under our personal names for now after pursuing a cash out refi based on some renovations we did with our personal residence.
@Andrew Spinelli . Yes with single family.. multifamily is a little tougher.. but not impossible...
@Andrew Spinelli pm me for further discussion when time permits. Regards Joe
@Andrew Spinelli Lending in an LLC is more difficult, going through this myself now and trying to find the best avenue for my situation...From my understanding - LLC loan will almost always mean higher rates.
to @Skip Dell 's point, always want to confirm the zoning and legality of your multis ... I don't see an issue if it's an existing* multi, but doesn't hurt to confirm with town.
I rehabbed and sold 1002 Central Ave Lindenwold NJ an SFH. I found Lindenwold to be a pleasant town to invest in. Although there are not too many MFH though. We did alright.
Paid $85K sold for $190K
There is a hospital nearby, TPK, Philly well connected
I would not mind going back there but for MFH