All Forum Posts by: Sean McKee

@Joe S.- I paint everything (walls, trim, ceiling) semi-gloss pixel white. I was against doing this for the first couple years because I didn't like the concept and how it would look. After a few turns, I decided to go for it. I'm glad I did, it is much easier to touch up and saves money. I haven't had any complaints from prospective tenants either. I agree with @Raju V. and @Linda S., the price of the market dictates what you provide.

I like the Henry Ford approach to Class C rentals. The tenant can have any color they like as long as it's pixel white.

@Michael Williams- Educating yourself should be the number one item. Looks like you are already there by being active on this site.

Start thinking about the types of rentals you would like and reading up on how to manage them. Class C rentals can have very different clientele than Class A. Even if you plan on self managing, I'd make sure the property works with a property management company so you have a way out if you grow tired of doing it.

Do market research so you understand the various trends going on in the area and what types of units you need to appeal to the widest tenant base. The last thing you want to be stuck with is a dud that is hard to rent.

Absolutely start networking now to find insurance agents, real estate agents, lawyers, contractors, and lenders. That way when you find a a deal you are ready to go.

Good luck!

@Bronson Simmons- There's a good book called Buy It, Rent It, Profit!: Make Money as a Landlord in Any Real Estate Market by  Bryan M. Chavis.  It does a pretty good job of giving you a frame work for organizing information. The author called it SEOTA or Strategic Evaluation Of Target Area. I credit this book for giving me a solid frame work and helping me pick the right property types and areas.

The US Census is actually one of my top sites for getting high level data. Follow this link. Type in either the city name or zip code. From there you search the tables and filter the data you actually want. I'm by no means an expert on searching the site, but I I'm able to find what I need without too much trouble.

You can also go to sites like City Data, world population review, city protect.

For more specific data try the city's home page site or googling for specific studies. Chicago for example has community data snapshots.

Lastly BP can be an excellent source for more neighborhood specific information.

@Mike Terry- Good article and reminder that while markets don't repeat themselves they do rhyme. History is are best guide for what the future might provide.

@Eudith Vacio- why do you like the border on near Indiana so much? This still Cook County right? I'm not very familiar with that area.

@Conte Cuttino- I can't speak for Memphis but a lot of local laws allow for reasonable access during normal business hours. I would post of a notice of entry on door stating the exact date and time you will be entering. Show up at that time, knock and then enter if nobody responds.  If the tenant is there and still refuses entry, then this could be construed as a breach of contract, at least that's how it works where I'm at. You could then proceed to evict. 

It doesn't matter a lot of times if they are month to month with an oral lease. Both the tenant and landlord are still subject to state and local laws.

I don't know how the eviction process works is in Memphis, but in Chicago it's slanted in the favor of the tenant and takes months. I would personally see if you can find a different alternative to get them to comply. It's easier for everyone if there is not a big fight involved.

@Pat Cruz- What documents have you not been able to serve? I had a similar issue. Tenant stopped paying in May of this year. However we were able to serve a 5 day notice in early June and had a court date set for mid July. We were in the process of having a special process server serve them, however they moved out before it got to court. So I agree with @John Warren, that the lawyer might be slow on this. 

Have you offered to pay them to leave? I know it sucks to do that, but in Cook County it's fairly common. I'm not sure how backed up the courts and sheriffs are with other cases, so it might be a few more months before they are out. I've done it a number of times and have only had it rejected once(the case I mentioned above).

You could also report them to the credit bureaus if you have the right information. Evictions are sealed from people's records until August of 2022 I think, so people might not be worried about the repercussions of going to court. However their credit scores are still fair game. So this might cause them to leave on their own if they think it will end up on their record.

Just make sure you talk with an attorney to choose the right strategy for your situation. Hang in there and good luck.

@Jake Fugman, @Jonathan Klemm, @John Warren, @Michael K.- I completely agree. Your criteria and areas of interest had to adapt over the past few years or it would have been hard to find any deals. Little Village wasn't on my radar for years, but then an opportunity to purchase a 4 unit came up. South Shore and Hermosa have definitely peaked my interest as well. I do see a lot of people stretching with some of the multi-family. I've been out bid on some buildings that needed a lot of work and had me wondering what the buyer saw.  2022 will be an interesting year.

@Susan Clark- I have had this happen quite a few times. It's the unfortunate headache of multi-family investing. What I do normally is both email and mail a smoking violation letter. It's sternly worded about the continued consequences of smoking. That usually stops the behavior. Stuff in writing seems to get the point across better than phone calls/texts

If that doesn't work, you should announce a building wide inspection and that anyone caught smoking will be fined(if your lease allows that) and their lease potentially terminated.

If they still aren't cooperating after that, then I'm sorry you have a pretty bad tenant.  You will have to evict them. Smoking can cause a lot of damage. I had a tenant who managed not to get caught smoking in just one of the bedrooms for a few months. It took weeks for the smell to "mostly" go away.

Hello fellow Chicagoland investors!

2021 has been quite the year for real estate. Competition has been fierce for residential property and deals are hard to come by. I'm sure a lot of us got more creative and worked a bit harder to find deals that work. As 2022 approaches, what markets within the Chicagoland area have caught your interest? Where do you see the most opportunity? Have you had to adjust your investment approach?

I know I have started to set my eyes on Northwest Indiana and have found myself considering areas in Chicago that weren't on my radar 5 years ago.