St. Louis: American Housing Alliance?

[Viren Kumar]

Does anyone have any experience with American Housing Alliance in the St. Louis Market? 

[Paul Shafer]

@Antoine Wade:

I know this is late answering, but all has not gone well at all. In fact, it’s been a nightmare from the beginning with literally one problem after another.

I hesitate to write this, because I’ve met and consider AHA people friends (and they're on Bigger Pockets). And I'm not one to publicly air grievances. But at some point, the camel’s back can take no more. I started to write my experiences, just providing the lowlights. But after 3 pages, I figure no one would want to read that much and it would just come across as whining.

So, I’ll try to summarize (there’s MUCH more):

I purchased 2 renovated turnkey houses from AHA in 2019 and so far, I'm out an estimated $9000 in repairs/CapEx with $3000 to $5000 additional expected. I'm out $2000 in lost rent in property#1 due to major sewer lateral problems that showed up immediately after the 1st tenant moved in and made the house uninhabitable for a month and a half (not to mention a ticked off tenant).

AHA left a 26+ year old furnace in property#1 (the SOW said it would be replaced as part of the renovations). After learning of this (after the furnace went out this spring and tenant ticked off again) and arguing with AHA (and a flaming email or two), they did agree to replace the furnace. In property#2, they left a 15+ year old water heater ($2000 repair bill) and a 20+ year old AC unit ($400 repair bill - so far). A tile job in the bathroom and kitchen of property#2 was “the worst I’ve ever seen” (quote from contractor), is now a safety hazard (broken and cracked tiles) and is letting water leak into the basement from the upstairs bathroom (estimated $4000 repair bill). Property#2 also had about $2000 in repairs (electrical, sewer, plumbing, pest infestation, etc.) shortly after the 1st tenants moved in.

I am now on property manager #3. I fired the original PM that came with the deal after 9 months and 4 months respectively of closing on property#1 and property#2 with still no tenants in place. At the first of this year, I found and switched to PM#2. Several other unhappy AHA investors were also pointed to PM#2 by AHA. This summer, PM#2 terminated all of our (AHA investor) contracts. PM#2 told me that every single AHA property they were managing had significant issues and that it just wasn’t worth the hassles any longer. I had to go out and find PM#3.

In summary AHA is bad news. I’d be very surprised if they were still in business. But if they are, and anyone actually reads this, my advice would be to run away.