All Forum Posts by: Jonathan R.

Hello BP Community. I have a real doozy going on here. I just moved in a few weeks ago a new section 8 tenant into a duplex with the other side occupied by another section 8 tenant. I am getting great rent per side. Anyway, the new tenant has a gov’t caseworker, I knew that when I signed his voucher and went over the lease. I didn’t ask about his illness, nor is it legal (I’ve been told) to ask. He seemed chill. Since moving in, he’s had two psychotic episodes where he screams vulgarities and makes a big scene; the cops came last night. I’m in a one year lease and we have had two episodes where he has completely disturbed my other tenant, and the neighbors (whom I adore). Is not providing a peaceful place to live for others grounds for eviction? Section 8 is involved too, as I signed their paperwork, this is a doozy I know... Any advice?

Call the utility companies and set up a payment arrangement. Some will take 1/12 of the bill and divide the rest in installments. Then figure out how to get utilities and rent separate.

I have broken a few: I buy pretty much every time without an inspection (granted they are 20kish sfr); I’ve kept at times basically zero reserves; I’ve touched the forbidden 401k; I not only buy distressed properties but I sometimes buy in distressed areas; and... I think leverage can make people lazy-if the investor hustled harder it would be amazing what can be produced.

 Ready for this bad advice, put it back in an auction. Try McCurdy if you bought yours at a tax auction... Maybe someone else knows what to do with it. Lol. Not sure that was ethical. Use your discretion. I like @Jason Lavender idea, if you absolutely can’t recoup your initial investment and don’t want to pay the taxes or maintain it etc, stop paying and let the city take it back.

 This utopia you describe sounds eerily like Animal Farm (communism)-working together for the good of the whole, the poor working for the government, too much gov’t control etc. Personally, I like the way we do things, it’s a safety net not only for the most vulnerable, but also encourages risk taking because life can only be as bad as the provided safety net.

@Irwin Velez if you are employed, you can borrow against your 401k (I support certainly if you are going to stay for five years in your job until the loan is paid back), the interest is paid to yourself-it is low like 4.75%. Nominal fee (like $50 maybe) only. You can borrow up to half of what you have in your account, $50,000 max if you have $100,000 in your 401k. Aside from that... you would have to do a hardship withdrawal.... Don’t let people scare you out of using your own money... Keep contributing to your 401k to get the company match, but other than that, blow the 401k up at this point I think, don’t let Wallstreet 401k bankers make you think you can’t use your own money. 

I use my 401k to help me in real estate as often as possible. I know how to buy right though. Good luck!

@Lue Brooks Ready to hear what it costs to treat bedbugs? I split this cost with a good tenant because we like them recently. Anyone know????

$650!

It is more expensive than normal bugs. Once they are there, you must get rid of them, they will follow you everywhere, moving will not help. It’s a big deal. Call a pro, shoot for a whole house bomb for less than that number I gave you, that is a cheap company even; the bedbugs treatment service is guaranteed for a year. To treat bedbugs you have to spray weekly, it’s a mess, good luck! And do not go over to the property personally, burn all clothing. 

Also, I wouldn’t sue. Take it across the chin and move on. Send them within 30 days the long list of why you are keeping their deposit. Just my .02

Congrats on your MBA at Wichita State (coming Dec.)!!! I was unable to get into that program because my undergrad gpa was not high enough, now I went on to 4.0 an MBA program at Baker and carry four addition A grades on my first four classes toward an MAOL (just to gain addition credits to teach and learn, my employer has 100% reimbursement program up to $5250 a year) so I’m not joker of a student, your program is certainly excellent; tough to get into. I’m proud of you. Keep working that W2 and selling real estate on the side, I did that for many years (5 maybe), push hard, save 20k and get a Home Depot or Lowe’s card and get in this local real estate game as a investor asap-:) You’re awesome, your local perspective is always called upon and so much appreciated. Reach out anytime and I’d love to show you all my properties. Cheers. 

You’re crushing it, I am aware of you from this original post, we chatting on a post I think a year or so ago. I see a vacant apartment complex, one that completely fits that description, I’d like to inquire about in my area. Your slam dunk was an arrangement with the agency that helped place tenants. All of my stuff is Section 8, so I supposed it could fill, but it would take some time to place for sure. Good luck! Thank you so much for posting, sir! 

 Yes, for sure, we don’t mind self managing. I’ll still have a handful of others if this one sells. I suspect it will but hasn’t yet, we aren’t too worried about it as it’s priced at market. We are about to reduce it to 66k, stuff has been selling like crazy in this type of range. No worries either way, it just feels good to be kicking some butt. :)