All Forum Posts by: Mike Nelson

Good points above.  I would be curious about his work history the past five years, what profession, income, and stability as an employee.

I have a six unit in Chicago's Wicker Park, and one of the 3 bedroom apartments become vacated.  There are several repairs and upgrades which are long overdue, so this is a good opportunity to make them, spending about $8,000.  My handyman typically does about 95% of the work.  I have a little extra time, so I am helping out, along with my 19-year old college (University of Iowa) sophomore to be.  He is studying computer science and working with kids this summer.  I bought the property before he was born, and has had little involvement.  

The biggest benefit may be he will find out what real work is, and what is involved in the process.  I am taking him to Home Depot and asking him to help me make decisions on what flooring, paint, bathroom accessories, etc. to buy.  He has cleaned refrigerators, painted walls, and pulled staples out of floors.  He does not have a real interest in real estate, I am not trying to sell him on it, but just want to expose him and do something we can do together as father and son.  He is able to see the scope of work which is extensive wall plastering, painting, woodgrain vinyl floors, new window glass(5 windows), new light fixtures, etc.  He can earn money toward his college expenses and have some new experiences.

I like to think of myself as a real estate investor, but I am really a real estate investor/manager.  Real estate tends to require more active management, unlike a stock investor.  "Real estate investor" does not include the management component.  But from the standpoint of the tenant, I am the guy that provides and maintains their home.  Property manager is a good start, but I am looking for something like "Home Provider".  The tenant should not see me as an "investor" any more than their car dealer or grocery store being thought of as an "investor"

I suggest writing an ebook on how to make money online.

My son just rented an apartment in Iowa City for next semester at Iowa.  He told me there is a good demand for apartments.  His particular apartment, for some reason was formerly two units combined into one.  Six students share the apartment.  Together it goes for about $2400.

What Every Real Estate Investor Needs to Know About Cash Flow by  Frank Gallinelli.  It really digs into all  the important concepts and equations in real estate finance and presents them such that I can understand and use them.  Actually pleasant to read.  Finance is a cornerstone or real estate, and needs to be understood, and this book will help. You can get this information elsewhere, but it is all here.  I also enjoy @Jay DeCima and Dave Lindahl noted above. 

Nice job!  Solid area.  What were the biggest expenses?  The kitchen must have been expensive.  Staging looks good.

Good suggestions.  Nice home.  Needs staging, including the yard.

It depends, of course.  There would have to be available space, perhaps in the living area.  Hopefully you could run plumbing in pairs if kitchens are back-to-back.  You would need hot and cold water supply, sink water drain pipes, gas or 220v supply for ranges, and ventilation for starters.  You would need hot water heater capacity.

I recently upgraded a 3-bedroom unit in Wicker Park Chicago after a tenant moved out who lived there five years.  I did extensive plastering of cracks, etc, repainting, sanding wood floors, new bedroom laminate floors, and new bathroom.  I raised the rent from $900 to $1450.   I spent $6000.   Other tenants in the building were aware of the work, so I offered a group an opportunity to change units, which they declined.   It did create a couple of requests for some minor work.