First buy and hold property

[Jamie Moyer]

In 1991, after doing extensive research, and against the advice of some nearby Brokers, I became a "pioneer" in an extremely economically depressed, and crime ridden neighborhood in Chicago. The first rule in R.E. is location, location, location. Using that rule, and forecasting future changes for the area I believe I did pretty well. The property (a run down 2-flat and coachouse) was located close to the lake, downtown, popular attractions restaurants, etc. and was surrounded on three sides by some very expensive neighborhoods (Gold Coast, River North, Lincoln Park). I paid $115,000 for the two buildings. Nine years later my vision paid off, as the assessed land value (besides buildings) was $925,000. Now the neighborhood is one of the most desirable in the City, and there's a new construction $2.5 six bedroom home on my lot. I still have enough land left over to build a second smaller SFR.