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All Forum Posts by: Jason Allen

Jason Allen has started 3 posts and replied 100 times.

Post: Foreign LLC in Ohio???

Jason AllenPosted
  • Posts 100
  • Votes 70

I would have to ask, why not just set up another LLC in Ohio? Unless there were a pressing need for using a foreign LLC ...

Post: Vacant Home Insurance

Jason AllenPosted
  • Posts 100
  • Votes 70

Try Steadily.. I don't know if they operate in your area, but I use them for a few properties

Quote from @Alecia Loveless:

@Teresa Grobecker I’m still fairly new, 7 properties 25 doors but when I first view a property I take my contractor. He looks the property over with me and after we’re done he gives me his initial estimate of what it will cost to bring the property up to rent ready condition (or up to code if it’s already rented).

Then I take that number and work it into my calculations based on the numbers in the information packet or listing or whatever information I have and figure out what I can offer.

If I get it under contract I ALWAYS get an inspection. Then based on what turns up in the inspection my contractor adjusts his estimate based on any new items that were found in the inspection. If it’s a large adjustment in cost I go back and renegotiate.

Currently in my market there’s not much wiggle room for renegotiation. I have gotten $100,000 off a $300,000 list price. I also backed out of a $350,000 property that the inspector caught that the walls were bowing in on themselves. Now 2 years later 2” cracks have developed in all 4 units of that property so it’s good I didn’t buy it.

I just find the $5-700 cost of a normal property inspection to be worth it.

How did you find out about the bowing ( I presume in the basement walls) of the property you passed on?

Most, if not all, Northern cities are going to be slower in winter; I mean, who wants to move in the snow? 

If you're not overpricing yourself relative to the competition, and the unit is nice (clean, in good shape, etc.), then the only thing left it could be is your marketing. Are you listed on Zillow, Avail, Apartments.com, and TurboTenant? With that combination, you will be syndicated on almost all the apartment-listing websites.  Also, before you do so, re-examine your existing ads. Unless your photos and copy are professional quality, consider retaking and re-writing them, or just having a professional do it for you.

 I would also throw in Facebook, and spring the extra money for the promotion. You'll get a lot of leads (although the majority will be low-quality leads), but you'll at least have something to work with. 

Also, in the future, put a clause in your leases restricting ending the lease in winter, and you won't have this problem next time...

Quote from @Avery Moore:
Quote from @Scott Forbes:

This is an update on the eviction process in Clayton County, GA:

Evictions in Clayton County, GA remain a nightmare for landlords. Clayton County Magistrate court judges are in no hurry to enforce the laws on the books. Instead, they continue to string out the eviction process as long as possible to allow deadbeat tenants to live rent free as long as possible on the backs of struggling landlords. Fox 5 news reported on this in September 2022:

https://www.fox5atlanta.com/news/court-backlog-prevents-clayton-county-landlords-from-evicting-tenants

My tenants ceased paying rent in August 2022. My property manager immediately began the eviction process using a highly reputable eviction service. The complaint was filed with the Clayton County Magistrate court in early September 2022. Finally after several months of waiting, we received a court date of February 15, 2023. Yes six months later! We went to court and were successful in winning our case. We received the Judgment against the tenants who continue to live rent free in the property. We filed for the Writ of Possession soon as it became available. In every other county in Georgia, the judge signs the Writ and the tenants are usually set out within 10 days. Not in Clayton County! It takes another 3-6 months. Our Clayton County Magistrate judge gave us a Set Out in September 2023. This gives the tenants another (4) months of rent free living while they continue to destroy the property and there is nothing we can do except wait. So, in September (yes 1 year later), the Marshall will oversee the locks being changed and direct (8) people to Set Out the tenants belongings into the front yard. Only then are we able to retake legal possession of the property. Property investors should think twice before investing in rental property in Clayton County. Beware, you have been warned!


 Clayton County is so horrible when it comes to evictions. I have a property in Clayton County, my tenant was also living rent free due to bankruptcy. From June until November I haven't received one payment, my court date was set on the Monday of Thanksgiving which the clerk couldn't give issue the court order document because she was swarmed with all the cases that week, the following week I received the court order and the writ. The judge also gave me a date of next year to execute the writ of possession. Clayton County needs to get this in order but I believe its being done on purpose.

Every time there is a judicial hold-up ( and I mean that in both senses of the word) like this, it is intentional. Then people wonder why investors don't want to invest in these places and the housing stock turns to garbage...
Quote from @James Gillice:

Hello BP,

I bought my first rental property in early 2022, an out of state (KCMO) SFH. I bought from a turnkey company that is endorsed by BP. The home was not "turnkey" per say, but was sold by another investor through them (not sure the exact details, but this fact was disclosed beforehand). I got in before rates skyrocketed (4.25%). I used a HELOC on my personal residence for the down payment. Things went really well for the first year. Even with HELOC payment and maintenance costs, the cash was flowing and I was making several hundreds of dollars every month. I was planning repairs and upgrades while also paying down the HELOC in preparation to buy a second property. I though I had this figured out.

Then in early 2023 the repairs started increasing, including a major repair. A busted sewer line near the street (but not close enough to the street for the city to be responsible) cost me about 6K, plus maybe 3-4K in other repairs and maintenance around the same time (some elective, not mandatory. Like I said the cash was flowing). Plus I lost out on rent for over a month as the house was uninhabitable. I used up every bit of reserves and had to use the HELOC to make payments for a while. Now the tenant has moved (end of Nov) and I've just got the inspection report and repairs needed. The house has been pretty trashed, probably 12k in repairs.

The other side of this situation is the fact that since I bought the house, I've been laid off from work twice. I worked for a year in a just barely (not) enough to get by job. So things have been incredibly tight financially. I now have a new job that pays "enough" but this recent hit is making me re-consider my options going forward. Here are various ideas and factors that I'm considering...

1. Sell the home and cut my losses. Lose my 4% interest rate and search for another property. A year ago I could have sold and been debt free. Now I'm not going to get enough to pay it all off.

Rates that low are impossible to find now. If you plan on staying in the game at all, you'll be kicking yourself down the road for getting rid of it. IMHO, I would only sell if personal finances made it absolutely necessary. 

2. Keep the house but find a better property manager. Renters Warehouse is the manager that came with the house. They have been unsatisfactory but I don't have anything to compare to so I don't know if it's worth the effort to find a new one. Their repair processes take forever and they are horrible with communication. And theres about 10 points of contact so I never know which person I need to talk to to get something done. All information is second or third hand. They don't allow me to be as "hands off" as I'd like to be. Any recommendations in the Kansas City area?

$12,000 worth of damage does not happen overnight, unless it was very intentional, likely criminally so. The property manager should be doing at least quarterly inspections, which should have caught the issue early. Presumably they placed the tenant, and then let them destroy the unit over the course of a couple of months, right? You should not even be considering keeping this company on. If they were the only company in the KC area, I would say either sell or move there to self-manage, rather than keeping them.

3. Keep the house and try to find better vendors/quotes for the repairs. I've always gone with the PM recommendations because I really don't have time to do the research myself. But I've got to believe there are more competitive offers out there. Any recommendations in the Kansas City area?

Maybe as part of your search / vetting process for finding a new PM company, have them price out the repairs, and factor that into your selection?

4. Make the needed repairs as quoted, keep the same PM, and hope this bad patch is behind me. I'll be pushing the current limit of my HELOC (only 20k left) which will be bad if more emergencies come my way.

And when this situation happens again next year, and you're forced to sell because you've exhausted your reserves, you will wish you had dumped this PM.

5. Send previous tenant to collections for back rent and repairs needed. Is this a complicated process? How much will it cost me up front? Will it even work?

I would do it as a matter of principle, but bear in mind you are very unlikely to ever get any money back... in fact, you are more likely to spend more money than you will ever collect. Sending them to collections will likely involve suing them first. Do you have all the documentation to do so? 

In typing this out, I realize that I will need to seek better vendors and a new PM if I'm going to keep the property. So basically the question I have is...do I sell or keep the property at this point? Any suggestions or advice of any kind for this situation would be great.

Thanks in advance.


Post: New and interested in Section 8 Landlording

Jason AllenPosted
  • Posts 100
  • Votes 70
Quote from @Larken Ewing:

Hi, everyone

I'm looking forward to being active on this page and learning as much as I can from more experienced real estate investors. Originally, my plan was to invest in a multi-family property and house hack, but then I heard more about the idea of being a Section 8 landlord. I still want to house hack, but after hearing more about section 8 landlords, I thought that might be a good first intro into real estate investing for me. If anyone has any input on how to get started, best areas to invest in, the process they've gone through etc, I'd really appreciate it!


Sec 8 has it's place,  A) if you are big and can afford to specialize (or subspecialize) in it or B) you are focusing on an D or lower area where the market renters are going to be even less reliable and and even more hassle than the government. That said, I wouldn't recommend it for a new investor just because of the added hoops to jump through and likelihood of bad tenants that will wipe you out. If you are just starting out and can't afford for the housing authority not to pay you for several months while they sort out everything (if they decide to pay you...), it may not be the best game for you.

Quote from @James Wise:
Quote from @Henry T.:

Sorry, but 550 credit rating is for criminals. I've always been 720 and above. I'm now 750. The one time I took a 550 I ended up with a trashed house. 10k in damages.  I've had damages from 720's but it does get worse the lower you go.


 When you're in the hood, you're not gonna get a lot of 700+ credit scores.

When you're in the hood, a 700+ credit score is a red flag for identity theft...

It should not be that difficult to prove a violation of a no dogs clause. Unauthorized tenants would be different, but either a dog is there or not, and the lease says it's allowed or not. Very little to actually prove.

 Schedule the HVAC service, either do an actual service, or have a friend who can change out a filter and is willing to verify, and get pictures. They may hide the dog if they know you're coming, but if you give them short notice (24 hour if allowed by local law) and a broad timeframe, like 10am to 6PM (hey just like the real HVAC guys), they are less likely to be able to hide the offending dog. Get the proof, issue the cure or quite, and then file the eviction. If they genuinely are concerned about getting a good reference, or even having a next place, they will leave before you file.

Post: Rent or become an investor.....help

Jason AllenPosted
  • Posts 100
  • Votes 70
Quote from @Terence Crafton:

I know by the title it's really a super no brainier! 

I'm currently located in Texas about to relocate back to Kansas City Missouri 12/26/23.

I'm desperately wanting to house hack with a 4-plex but I'm not sure if I'm able to afford it or qualify. Thus the reason I feel I may have to rent for a year until I can make sure I'm in a better position to win.

I need help. I guess starting with finding out if I'm on track towards passive income. If not, then I'll need help to find a place for 12 months.

Any help or advice will be very much appreciated. Thank you for your time. 


A quad would be great if you can afford one (or find one...) but realistically a duplex is almost certainly quite a bit cheaper, and likely easier to find. Rather than trying to chase down or hold out for a quad, just start looking for anything (triple. duplex) where the numbers work, even a large SFH (if you're down with roommates). If you can make the numbers work with these interest rates, then a few years down the road, if rates go down, you can refi and really cash-flow. If rates go up, you will be very glad you got locked in when you did. Don't be steamrolled by analysis paralysis... 

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