All Forum Posts by: Mike Nelson

If you were able to move this away from being a non-Section 8 building, one factor in evaluation is the quality of the local neighborhood, and the potential for attracting good tenants.

Have you had an engineer or technician inspect the sewer system and HVAC system?

One thought is to discontinue or downsize the Realtor business.  How much can you potentially make in sales versus long-term growth of equity and cash flow from owning property?  Work as a property manager provides income security and builds your knowledge base, confidence, and contacts.  See if there are areas in your construction management where you can be more efficient.  Refine work you give to your wife to your mutual satisfaction, possibly.

The theory is to do one thing very well, eliminate everything else, but I am not sure that is an absolute.  

Just my thoughts from afar.  Looks like you are doing some good work.

One thing to keep in mind about windows in or near showers is they are often required by code to be tempered for safety reasons.

Thank you, my tenants, or prospective tenants,  typically would not consider buying as an option, because of budget.  However, if "more affluent" tenants in my market are buying, it makes it a little more challenging for me.  The CTA trains are much emptier than they were pre-pandemic.  That said, things are starting to look better.

What is the current demand for tenants in Chicago?  When I marketed and rented an apartment 8 months ago, I found it more difficult to find qualified tenants, and ended up dropping rent 10-15%.  Location is Wicker Park.  At that time, unemployment was quite high, reducing available tenant pool and reducing demand.   What is demand and rent level like compared to 6 months ago and 2-years ago?

In 1987 I bought a 3-unit in Chicago's Wicker Park for $67,000 with a assumable FHA loan. I paid the seller $275 a month on a second mortgage for his equity. There was no money out of pocket.

I can see this one either way.   My guess is this tenant has made you more money than the average tenant, given no vacancies and associated turnover costs.  The late fees must add up to quite a sum.  If the tenant had not had to pay these fees, and banked them, they may have had enough money to never have to pay late.  Generally, almost always, I would rather have payments on time than receive a late fee.  The downside of having late payments is bad-possible need to evict.  Having to chase after late payers takes a lot of time and takes some of the fun out of this business.  Peace of mind is important.

Worldwide pandemics happen.

They have occurred periodically throughout history and will occur again.  They negatively impact day-to-day business, and affect the economy.  They reduce the demand for many types of real estate short term or long term.  They create unemployment, affecting demand for housing and the ability to pay for housing.  All the affects are yet to be seen/

I would ask.  They may not want to show their cards, but on the other hand you may get some useful information.