All Forum Posts by: Sean McKee

@Dante Williams. Thanks for your reply . Yes it very helpful. I’ll definitely drive around more to get a feel of the vibe.

Hello BP and fellow Chicagoland Investors.

Through conversations and research I’ve increasingly heard more about East Garfield Park and Austin (especially East Garfield Park). It seems like both areas offer strong cash flows.

I’m aware of the crime in both areas and the potential risks stemming from that.

However from a rental aspect what blocks/areas, if any, attract the best tenant pool? Have you experienced any significant periods of vacancy?

I’ve been to the neighborhoods quite a bit, but never really considered them from a rental aspect. I’d be curious to know what people think.

Thanks

Good Morning BP.

I currently own some property in Cicero. I was able to buy when it was still cheap. However the last few years prices have run up quite a bit, along with the tax bills. I’ve watched my tax bill on one property almost double. Berwyn, Maywood, etc. all have obscenely high tax rates.

When looking at new deals in the area, I’m getting pretty put off by how high the taxes are. Are you still finding it worth your time for buy and hold in the area? Do you think rents will adjust upwards as fast as the tax increases?

Hello everyone!

Hopefully everyone’s doing well during  these uncertain times.

I’m in the beginning stages of looking for new target markets in the northwest Indiana . I’m looking for strong rental markets that can attract decent tenants. More than likely would prefer to stay in the class C areas, but open to better areas.

So far Hammond, East Chicago, merrillville have come up come up on my radar. Hammond seems the most promising.

I’ve considered East Chicago given the low prices. However I don’t like the vacancy rate and percent of vacant  buildings.

Any pointers to any of these markets and if they are worth exploring would be appreciated.

Thanks!

It depends on the lender sometimes. I had one request signed leases before they would close, luckily I had tenants already lined up. I would check with your lender before, unless think you can rent it before closing.

good luck and congratulations.

It depends on what you mean by uncooperative. If it’s simply because they don’t want to be inconvenienced, then I’ll show them the clause in lease that allows showings during reasonable hours of the day and with enough advanced notice. If they are particularly animated or kind of dirty, I’ll give them 25 dollars automatically and 75 more if I rent it. This seems to work to ensure they are more cooperative and cleaner. Bottom line is I’ll be respectful, but I’m showing the unit. Hopefully you have this provision in your lease.

Unfortunately if they are the other kind of uncooperative(constantly late, major lease violations, or filthy beyond belief), you probably are best letting it sit vacant. They are likely a high risk of holding over or scaring prospective tenants away. I’ve unfortunately had all these issues and one person actually holdover. It’s better not to have them in the picture while trying to lease.


Vacancy is too expensive to not try and reasonably rent the place, unless of course the unit needs major work. There’s always the risk of something going wrong, but if the tenant was at least decent, they likely aren’t going to want to risk an eviction on their record. 

Good luck!

I don’t know the specifics of the deal. But I bought a property with a similar situation. Owner was in the process of evicting a tenant. I was able to view all the units except the one being evicted. The sellers attorney said that we would not get access either.

What I did was assumed the worse in terms of condition. I also had a contingency for price reduction of the estimated time to evict. Fortunately the tenant abandoned the property before closing, so it was not necessary. Of course my worse wasn’t quite enough,the unit was a little more beat up then I imagined(feces, mold everywhere, drawing on wall, etc). It still worked out, but I wish I had allowed for a little more for damages.

It’s definitely a risk, especially with COVID delays to the eviction process. But if you can get a low enough price, you might be able to compensate for the risk. Just be prepared for complete remodel.

Hi Robert,

I have rentals in C class areas and get similar types of tenant applications. I would not accept him.

Verifiable landlord references are key. I don’t count relatives or friends. Their references aren’t reliable in my opinion. Good references show that even with bad credit they can still manage to be decent tenants.

 Credit score isn’t the most important thing I look at, but it definitely should not be completely overlooked. In terms of scores I advertise 600 as the minimum needed to avoid an additional deposit, with 550 being the minimum acceptable (I’ll go as low as 500 if they are strong in other areas). Which creditors they are shorting also matters to me.Missed credit card payments or collections are less serious than car or utility payment issues. If I see car payment delinquencies or collections for utilities, I usually automatically reject. Those are essential items and are serious red flagS

I’d reject and wait for someone better.

I would not do it all yourself unless you have only a couple units, even then it would probably reduce your stress levels.

For searching use Zillow, Turbotenant and for rent signs. Unfortunately Zillow started charging I think 10 a week if your in certain markets. 

For screening I usually use Transunion. Sometimes I get tenants that don’t use email and use Rentprep.


For rent tracking and other accounting items I use LandlordStudio. It’s really easy to use .  

I use virtual assistants for most tenants interactions and maintenance scheduling and pretty much any other item I don’t want to do.

There have been a lot good information put by other people regarding your current situation and getting tenants.

I would recommend reading Brian Chavis’ book – “Buy It, Rent It, Profit!”. He has concept called SEOTA(Strategic Evaluation of Target Area ). It’s basically an easy way to organize information to determine demographics and what types of rentals to purchase. This might help you out in the future so you have an easier time attracting tenants and maximizing income. 

Good Luck!