All Forum Posts by: Sean McKee

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? 

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? 

After five years, we removed a tenant (via non-renewal of lease). They moved out and turned over the unit. Since it was never turned over under our ownership, we gutted the bathroom (needed it), redid the cabinets, countertop, and all three bedrooms. It's been on Zillow for about six weeks (most inexpensive in the neighborhood), and the # 1 comment we have is they do not like that the washing machine and dyers are coin-op and that they are in the basement. It's a four unit building, so the most economical way to install the washer and dryer was in the unit. There are also hook-ups in the basement for other tenants to connect theirs if they wish. I was thinking on placing a combo washer/dryer in the kitchen, there is a small space, but we have to run water lines from the basement and a drain hose. We really didn't want to do this, but we are concerned that it's taking a long time to fill. We filled a 1-bedroom in 3 weeks last fall. That was listed at $2k, and this is listed at $2.7k (again, a 3 bedroom). A combo washer/dryer would be around $1400, and a plumber to run the lines probably another $1200 or so. We've already spent around $15k in the reno with supplies (trust when I say the unit needed it.

Any suggestions?

Break even at 20% would be a dream in the major metro areas on the coasts. Takes 45% in most of those cities to break even. 

@Boris Le this is undoubtedly one of the most challenging times since I got my license for investors to enter the market. There definitely are still deals, but they tend to go to the more full-time folks who have the knowledge and experience. With that said, I am a big believer in buying in your back yard. Where do you live now? Focus there and double down. I wouldn't spread out to a new part of the city or suburbs where you don't know the area. 

I most recently purchased a building in Berwyn in 2024 and now a value-add deal in Cicero in 2025. I have stayed in the same areas where I started so my local market knowledge continued to improve, and my competitive advantage stays strong. 

Before:

After: 

When we bought the building, it had a tenant who needed to be evicted with big nasty dogs. We ended up paying him $2500 to leave, as did not want to wait the whole 8 months for an eviction.

Purchase: $135k

Sold: $450k. Original expected ARV was $400k. Redfin has Little Village growth at 10.6% in last 12 months so we got lucky on that end and our ARV was very accurate prior to the last 12 months of appreciation. Ran MLS comps to determine.

Rehab costs: Prefer not to share on a public forum.

Financing: Did a 25% down rehab loan that was at 9% and 2.5 points from a local bank. I also used my HELOC from another property for most of the downpayment so really did the deal with close to $0 out of pocket. My heloc is at 8.5%.

Scope of rehab: Kitchens/baths/flooring/paint. The basics to make it nice and rent ready, kept unit layouts the same. Some new windows, gutters, new garage door, motor, etc. Everything was beat up from decades of being a rental prior. 

We rented the 3/1 garden unit for $1720. I have the top unit 3/2 as a rental listing now from the new owner and have had a ton of inquiries 30+ for $2250. Rents in Little Village have gone WAY up especially if you do a nice rehab. A few years ago I would never of imagined 2 units at nearly half a million and demand for rentals going over $2000+ in Little Village. Probably will be over $500k next year, Brighton Park 2 units (neighborhood next over) are already now breaking $500k mark. The whole SW side is gentrifying rapidly. Looking at a 6 unit in area now for the my next one, this one a BRRR to hold onto long term.

Hello, I'm new and I plan on doing fix and flips in Chicago's South Suburbs. I'm trying to figure out what Rehab prices (material/labor) should I expect to pay as an investor and still be profitable.I'm focusing on SFH maybe 900-1,800 sqft. For example, how much should a roof cost? How much for single pane windows?How much for double pane windows? How much for plumbing?How much for electrical? How much for HVAC? How much for siding?How much to renovate a garage? How much for a nice updated bathroom? And how much for a nice updated kitchen.(nothing Super crazy just nice,updated and modern. It seems that most contractors that I speak with are all over the place with these prices so I'm trying to get a general guide post for this market. Square footage approach eample:Light rehab sqft? Moderate rehab sqft? Heavy rehab sqft?(scope of work for each of those categories included please)would help a lot. Thanks!

I am a newbie real estate investor and I am doing a lot of the rehab myself and I was wondering what type of flooring long term rental investors use?

Initially I wanted to use vinyl snap together flooring since it is pretty durable and I have worked with it before. The downside is it would take a while to install it myself and I think it would be a more expensive option. I have kinda been against installing carpet but it might be an easier and cheaper alternative.

I would love any and all thoughts. Thank you!

Speaking from a personal standpoint here as I get several mailers each month about my properties. They all have the same look and feel and I'll discard them right away. Unfortunately, you have to hit them at the 'right time' but that's impossible to do unless they're in a difficult situation and want to get rid of the asset. 

Mailers as a mono-action to lead creation is ridiculous, and this form of marketing has never been designed for such any more than a billboard is for getting "leads". 

Mailers is more-so a conditioning action. 

Could one get a call from "a" mailer, sure, but that's not the consumer psychology of it. 

Back in the day, all these tenant's of such were just "known", and followed, because we never had the internet to rely upon. So we would strategically hit a location with a mailer, that than the call-room would start hitting on 2 days later. And as call center worked the area, 2-3 additional mailers went out. 

Cold-calling is all but a dead-art, but the principles remain. 

Using mailers, in an ascending manner, in concert with conversion based marketing, that's what drives up lead gen to hit those 3,4% marks. 

Your mailers have to be conditioning based, referencing back to the converting portion (website / click funnel). And done in strategic waves. Not 1 but 3, 4 etc.. 

And when done in concert with other mediums, be it billboards, radio, whatever creating a saturation marketing strategy, that's how leads are made. 

But problem is too many think they can do just 1 action of the marketing strategy and like magic leads appear, that's gonna be a setup for failure. 

So if viewing mailers as the marketing strategy, your doing it wrong. It's a piece of the puzzle, 1 piece, so a person needs that whole to make that 1 piece most effective. 

In general, a click-funnel, a call center # (because needs to be answered 24-7), an ascending series to develop a lead in that click-funnel, and a series of mailers that "stack-up" on the messaging of each other.