All Forum Posts by: Sean McKee

Hey everyone! I am still new to the real estate world. I have been reading a lot of books and listening to BP podcasts all the time. I want to get into buy in holds eventually but I heard flipping in the beginning is a good way to build capital. So I was wondering other resources that I can determine estimating rehab costs on a property? I have about $15,000 saved right now, but want to be able to estimate rehab costs if I was analyzing a deal. Thanks for your help in advance

I will echo some of what David said.

-Books and BiggerPockets will give you some direction

-However MAKE sure you higher a general contractor to do a walkthrough and give you an estimate . DO NOT try and estimate repair costs yourself. Unless you do a lot of transactions, you won’t be up to date on what materials costs are, labor rates, and local code updates. It’s worth a few hundred dollars. It’s VERY easy to underestimate repairs.

0 Votes

Memphis, Tennessee

Quote from @Nadir M.:

I have a rental property on the market for 14 days. There have been multiple showings and walk-throughs, but no signed lease yet. I’m bringing in plenty of potential tenants, but none are committing. Besides reducing rent, what’s the single best thing I can do to increase interest and secure a tenant quickly? Any “wow” suggestions or strategies that have worked well for you?

50 days ahead of the actual lease date might be too early. I used to do 60 days out and found it to not be effective as most people weren’t seriously looking until 30 days out.

I think you have time before you need to start dropping the price. You can delist it and then wait a couple weeks.

1 Vote

Quote from @Henry Lazerow:

Hopefully this does not pass. @Brie Schmidt has been super helpful in fighting for landlord rights. Lets keep everyone informed when the next call to action is!

Seems everyday now more radical policies are being announced. The way I recommend my clients avoid problems is to only buy nice building in areas with high quality tenants, I cannot stress this enough for new investors in Chicago. A good golden rule is only buy a rental property if you would be willing to live there yourself. For example, my 4-unit in Rogers Park has never had a late payment notice needed in 8 years of ownership and of course never an eviction. I raise the rents to market every year and if someone leaves there is enough demand for multiple qualified applicants who are happy to live in a nice rental. On the flip side, there are other neighborhoods in Chicago where numbers look like great cashflow on paper but they have high eviction rates, even sometimes double digit eviction rates where you are heavily involved in Chicago eviction/tenant politics. In areas where the tenants can't afford the rent raise, you get stuck with either high vacancy/turnover or below-market rents. It's very important you NEVER let your rents get more than 10% below market rate with upcoming potential laws like this. It is not passed yet so if anyone has below market units I recomend you raise them immediately at the next lease renewal. Below are some excerpts from the new law.....

City Council lawmakers are hoping to once again bring to fruition the advancement of such protections for tenants this 2025 legislative session. Introduced by Alderman Desmon Yancy (5th Ward), the city’s proposed just cause eviction ordinance (“Record No. O2025-0017516”) would strengthen tenants’ rights in a concerted way, including by (1) requiring that landlords have just cause, such as nonpayment of rent or violation of the rental agreement, to evict a tenant or refuse to renew a tenant’s lease; (2) requiring that landlords provide tenants with relocation assistance if the tenancy is terminated through no fault of the tenant, or if the rent is increased by more than 10%; and (3) requiring property owners to register their rental units in a citywide registry in order to increase transparency in the private rental market.

Tenants who are terminated from their tenancy due to one of the causes listed are entitled to receive relocation assistance in the amount equal to five times the median monthly rent in the city for a unit with the same number of bedrooms.

Thanks for posting this. While this won't materially impact landlords that are charging market rents, I'm worried about the broader implications.

This kind of policy won't satisfy people/renters. A ten percent increase is still significant enough to upset people and there's the work around with the "Significant repair needed" section. It seems like you can still remove people without the paying the relocation fee if you are rehabbing the unit and it would make it uninhabitable. A lot of the landlords charging 50% below market rents have not kept up with repairs.

The issue is they can't really control some of the broader supply and demand issues that continued to push rents up. This leads to a lot of unsatisfied people and more restrictive legislation down the line. The Fair Notice Ordinance was enacted relatively recently, obviously didn't satisfy people.

I fear if this passes, this will be the just the tip of the iceberg of more stuff to come.

1 Vote

Chicago, Illinois

Quote from @Mike A.:

Interestingly enough, we had and application today, and on paper they look great. Initially, it was two adults, two sons, a elderly dog and a grandfather. Now, it's two adults, two sons, and elderly dog (who's now an ESA) and two grandparents. We are concerned that it's going to be too small for six people. Plus, the ESA was told to us after the lease was out.

Additionally, they are complaining about they do not like the lights and asked if they can be changed and they wanted to know if we can change the closet doors to different ones since they are harder to open since they are large.

It doesn't end there. They wanted their own trash cans, can't do that. As they are provided by the city, not us. There are four trash cans and four recycling bins.

They also asked how many other people live in the apartments, and I am not sure if we can provide that information due to fair housing. They also want access to the garage, which we told that's not possible as that is another person's property.

Lastly, they were on the property again without permission walking around "checking things out". We saw this on the cameras.

We are probably not able to move forward with them, which is a shame. But they seem too much of a headache; and they've not even moved in yet!

Absolutely do not rent to them. They will cause you a lot of headaches.

0 Votes

Quote from @Gp G.:

Hi,

I drove to one rental place listing. It is very unsafe are I felt. How to find the safety and crime in a rental location considering to purchase without physically driving many hours there and disappoint. Please advise

I like posting Craigslist adds. I offer to pay people that live there a little $$$ for some quick information. Then I verify that with online data, brokers, and local real estate investors. I find that people that live in the area give the best viewpoint. They can give you pointers on specifically which areas, streets, etc to avoid.

0 Votes

Quote from @Joshua D.:

Hey BP

I’m in the process of buying a triplex from a guy and his mother. They want nothing to do with the property anymore—she’s been in poor health, and the place has gotten out of hand. People have moved in without leases, and some of them are squatters with criminal backgrounds and drug issues.

I know how I’d typically handle this, but I wanted to ask—what’s the most cost-effective and efficient way to get them out without risking intentional property damage, lengthy court battles, or unnecessary costs?

Thanks in advance.

Like @Mike D. said. Cash for keys.

0 Votes

Quote from @July Maggard:

Hey everyone,

I’ve been driving for dollars and finding a lot of distressed/vacant properties in Schulkill County, PA. I’m serious about wholesaling and getting these deals into the hands of cash buyers, but I’m hitting a wall when it comes to finding the owner’s contact info (phone/email).

I’m looking for tips, tools, or possibly someone I can work with who has access to PropStream, batch leads, or another skip tracing method. I’m willing to bring deals to the table and split if you can help with skip tracing and backend support.

Any guidance, tools, or partnerships would be much appreciated. Let’s make some money together!

Thanks in advance 🙏

For a cheaper alternative you can try White Pages or a site like that. The county sometimes has the info you need as well. I've have used both methods to track people down. Recently used White Pages to find a seller that had the incorrect information with the county.

0 Votes

Wilkes Barre Scranton, Pennsylvania

Quote from @James McGovern:

@Sean McKee you typically serve contractors at their place of business and determine this via secretary of state

James good advice. I wish this was the case. this “contractor” vanished into thin air. We think we located him at a residence. I got tricked unfortunately. Luckily it was only a few thousand dollars.

1 Vote

Phoenix, Arizona

Quote from @James McGovern:

@Sean McKee front lobby won't accept credit reporting on a tenant that has already left . He should consider landlord collections.net

James I should have been more clear. They have to leave owing a balance on their account for rent owed. I’ve done that before. If they leave owing June rent for example.

1 Vote

Phoenix, Arizona

Quote from @Corey G.:

Quote from @Sean McKee:

Quote from @Corey G.:

Quote from @Sean McKee:

Quote from @Corey G.:

Tenant informed me he wanted to move out about 6 months into his second year (about 30 days ago). He thought he went month to month after the first year but never informed me of it (which is required in writing) and I have the lease set to renew for another 12 months automatically written into the lease. Well I'm pretty sure he just moved out anyways without paying the buy out fee (2 months rent pretty much). I haven't had these terms written into my lease very long and the tenant that broke the lease previously went ahead and paid it. What is the suggested process for this? I'm very familiar with serving notice for things like late fees/evictions but never have tried to collect on this. Technically he's late on the June rent now as well. Should I serve a late notice and then eviction and add the fees up at the eviction hearing or is thttps://www.biggerpockets.com/forums/52/topics/1245957-tenan...here a different/better way to do this?

Sorry to hear this. If they moved out it's no longer an eviction. As long as your lease is iron clad and you have reviewed your local laws, you might have a case to go after the rent/fees owed.

You could send him to a collection agency for the amount owed after you deduct the security deposit. This would allow you to credit report it. Some charge fees to do this. I've done it once, but for a few thousand dollars. Did not get the money back, but the tenant did get a negative mark on their credit.

Front Lobby, is a credit reporting site. It's relatively affordable, but you can only report late rent and late fees(fines and other damages you need a judgement) .They also have to be 30 days past due. So if you rent it within 30 days and keep the security deposit you probably won't be able to report him. If it takes you a few months, then you probably could depending on how your lease is worded. Make sure you double check with any credit reporting agency, to stay on the right side of the law. I always error on the side of caution. Credit reporting is good way to keep some people in line with the terms.

This happens all the time, especially in lower end markets. There's not much you can do besides credit report or collection agencies. Small claims court is not worth it unless it's more than 10k or you are absolutely sure they would pay up if you got a judgement. I've gone the small claims court way a couple times, it's not easy and it's not cheap.

I know your pissed, but this is part of the game....

I'm not super pissed or anything, it's mostly just that I'm strict with rules and I expect them to be followed so I like to hold people accountable to that. If you are saying that fees require a judgement, then how would you go about getting a judgement in the case that someone had already moved out or are other companies more lenient with their requirements?

The judgment is much harder. I’m going after a contractor for 3k he ran off with. This is mostly to prove a point. I have a lawyer and we are working on “trying” to serve him. We don’t exactly know where he lives. So we did a skip trace and might have located him. If we managed to Serve him, then we can go to court and get a judgement. However , he still probably won’t pay, but at least it hits his record. You would have to follow a similar process: start a small claims case with your local court, work on finding and serving the individual, and then get a judgement.

You can go after him in court, but it’s likely not going to be worth it. It’s a major pain.

I would suggest the credit reporting/collection agency route. It would be cheaper. You just need the tenants DOB and their last known address. Collection Agency would likely allow you to report the damages from him breaking the lease, just not the credit reporting agency

Oh I see. I figured an eviction might still work because I haven't received any communication from the tenant, he's just late on the rent and I saw him leave on my security camera and he hasn't been back in a few days... it just happens to coincide with when he wanted to break the lease and I told him that he never sent me official notice. I know an eviction will get me a judgement... at least for the overdue rent and if during the court date we find that he's vacated, then wouldn't the judge use the terms of the lease to access fees?

If he’s still living there. Then yes you are correct it would be an eviction. I’ve filed an eviction case and the tenant bounced before the court date and before they got served.. The case was dismissed since the tenant vacated. If I wanted a judgment I would then have had to file a separate small claims. If I had successfully served then I may have been able to get a judgment from the eviction filing.

It seems you might have a similar situation, where he might leave before you even get before a judge. After that, it will be harder to find him.

I’m definitely not a lawyer or familiar with your local laws. But I would first find out if he’s still there. If he is, then if you want you Can start the eviction process.

I’ve had a decent number of situations like this and most people don’t I’ve never had someone stay until the court date.

1 Vote

Phoenix, Arizona

All Forum Posts by: Sean McKee

Sean McKee has started 27 posts and replied 221 times.

Post: Information on how to determine rehab costs

Post: Rental Sitting 14 Days With No Lease Signed — What’s The Best Next Step?

Post: Lawmakers in Chicago introduce Just Cause Eviction Law - 5x market rent $ as penalty

Post: Turned over unit - Prospective tenants are not happy that the laundry not in the unit

Post: How to find the safety and crime in a rental location considering to purchase

Post: Squatters in triplex wanting to purchase

Post: 🔍 Driving for Dollars – Need Help Finding Owner Info

Post: Tenant Broke his lease without paying the buy out fee

Post: Tenant Broke his lease without paying the buy out fee

Post: Tenant Broke his lease without paying the buy out fee