All Forum Posts by: Roderick McCleary

Great insight Jeff, I assumed this happens frequently for landlords.

Have you ever imposed an early termination fee of sorts to the tenants for breaking the lease early?

Hi All - newer Landlord here. This is the first time I've come across this situation and was looking for any guidance/advice. 

My tenant (we have a great relationship, really enjoy them) informed me he bought a house and closes April 1. His lease ends Aug 1. I have his security deposit of $1,600 and in our signed lease it is stated "If the Tenant moves out prior to the natural expiration of this Lease, a re-rent levy of $1,800 will be charged to the Tenant"

What are my options here with this Tenant? Anyone dealt with this scenario in the past and what's my best path?

Thanks!

-Rod

Hey everyone - I have a tenant moving out of my Batavia rental property and the cleaner I used last year is no longer in business. Does anyone have any recommendations to pass along? The unit is not overly large, has about 6 rooms and is 1100sqft.

Hey everyone - I have a tenant moving out of my Batavia rental property and the cleaner I used last year is no longer in business. Does anyone have any recommendations to pass along? The unit is not overly large, has about 6 rooms and is 1100sqft.

Great post!

Hello Chicago BPers! I'm a newer investor and got started all thru the power of the BP Forums about 1year ago. I'm currently looking to do my 2nd Multi-Family deal, this time in Chicago where I would "house hack" by putting down 5% on a 3 or 4 unit building (looking like 3 unit is most realistic). Any advice or war stories to share with me? All feedback and comments are welcomed.

Background:

I own my primary residence 1br/1ba in WLoop and would be looking to move out/rent it for 1yr to move into the new 3/4unit building. After year 1, I envision moving back into my WLoop so I can rent out the unit I was living in at the 3/4unit which allows me to secure a low-Interest Rate and a small down payment (5%) to get started on the new property. The numbers the first few years don't cash flow that well (damn PMI) so I'm currently letting that soak in and trying to model out what numbers make sense.

I also bought my first 2 unit property out in the West suburbs so have about 1.5yrs of experience as a "removed" landlord (property is about 45mins away from downtown). I'm happy to report it's currently a success from a cash flow perspective!

Hi Everyone - I am posting this with hopes of receiving some guidance as I begin to build out my RE portfolio. I'll give a quick background of where I'm at, where I'm hoping to go and ask how do you recommend I get there.

Where I'm at:

Currently, I own my personal property (have 248k left on a 272k note). I don't plan on living here forever. This property is located in the hottest neighborhood in Chicago so if I sold it I could sell for a 75k profit or if I rented it out I could make $400/mo doing so. I have owned this property for 2 years.

I also just purchased my first investment property in the suburbs. I have 2 units and my monthly net profit is $850/mo (I have 170k left on a 230k note). This is my first year with this property.

Where I'm looking to go:

I am attempting to firm up my strategy as we speak, hence why I am posting this. I THINK I want to buy no less than a 3 unit in Chicago. Problem is, a 3 unit is very pricey here (probably looking at 700k). I would assume I could live in 1 unit in order to utilize the "house hacking" strategy. Or, I could put 3.5% down and just not live there. Either or would work.

My other option is to purchase a nicer personal home (2br, 2ba, more sqft) and rent out my current primary residence for the $400/mo net profit. This would be an improvement on my personal life (selfish approach) but wouldn't necessarily improve my goal of building out my RE Investment portfolio.

So, those are my two options. Would be curious to hear people's opinions here.

How to get there:

This is the part I probably need the most help with: how, in my current situation, can I use the existing leverage I have (my primary and investment properties) to finance my next move instead of putting my hard cash down (aka more risk). What are my options? I've read a few different ideas but haven't gotten a chance to sit down with anyone to discuss my specific use case. Any advice would be greatly appreciated here!

Hi All -

I've been looking to purchase my first Rental property for about 6mos now. I feel like I have a decent understanding of the landscape and recently found a property that really seems to be a good fit. With 25% down payment the property should cashflow about $730/mo in profit (however I don't think it will appreciate much as time goes on). Couple of questions for the community:

1. Do I need 25% down payment for the rental property? (I already own my primary residence and this will not be a house hack strategy)
2. If I don't need 25% DP, what is the best amount of money to put as a down payment?
3. The Cash on Cash Return number comes out 15.1% (with 25% down including closing costs), thoughts on this?
4. Should I calculate the IRR? Is this a better metric to use vs a CoC? I haven't dove into the specifics of IRR yet but was curious for anyone's feedback.

Thank you in advance to anyone who takes the time to comment!

-Rod

Hi all - I am on the ground floor of my real estate career. I am getting my ducks in a row to be able to purchase my first rental property here in 2018. Before I do that, I am seeking out a CPA that is local to the Chicago market (I live downtown Chicago) that I can meet with and begin building a relationship with as my portfolio grows in the coming years.

Currently I have a W2, some captial gains/stock holdings, and my own personal residence mortgage. Simple stuff for 2017 but am hopeful I can get connected with a CPA who specializes in real estate investments. Does anyone have any recommendations to pass along? Thank you in advance!

-Rod