New Member from Chicago and Oak Park

[Mike Nelson]

I am a new member to BP - great forum!  I began investing in 1987 when I purchased three two-flats on the same block in Wicker Park.  At that time the neighborhood was very rough, with gangs, etc.  Being an architect by profession, I enjoyed being a part of the renewal of the neighborhood.  At that time a 2000 sf two-flat in fair condition went for $60,000.  Today, that same property goes for $400,000+.  

In 2007 I slowed down, when I bought  a home in Oak Park, and sold all but two properties. During the great recession things were slow, including my profession.  I found money real tight to finance purchases and improvements.

I typically hold properties at least 8 years.  At my peak, I owned 12 properties (34 units).  Today I only hold a six-unit I bought in 1987,when it needed quite a bit of work and was difficult to obtain quality tenants.  Until 10 years ago, I had a married couple manage the building and address repairs.  They weren't the best, but at least I was able to muddle through and hold onto the building.  Now my standards are much higher, my focus is on upgrading the units and building to serve a good base of tenants better.  There is a big demand for apartments in this area, which is considered "cool" with many good restaurants.

I am in the process of refining my goals.  I work full-time as an architect, working for a good firm.  In it, I take satisfaction in improving the housing for elderly public housing.    My family time is important.  My six flat has a mortgage of $200,000, and a value of perhaps $800,000, so I have some equity and would like to achieve a greater cash flow.  I  am considering multi-unit properties in areas near my home,  such as Oak Park, Forest Park, and Berwyn, or perhaps chicago.  The challenges are finding properties in areas in which I would find tenants manageable.  

I enjoy reading the forums, there are certainly a lot of knowledgeable people, some amazing achievements, and a whole range of ideas, solutions and case studies.  I am open to any ideas.

Mike