All Forum Posts by: Alejandro Arreola

Hey bigger pockets family. I desperately need some advice. I’m currently working on my second deal. I’m looking to buy a package deal, which includes a single-family house mechanic shop and a duplex which are all vacant and need substantial repairs. The set price is 85,000 for the whole package deal. I’m also thinking of putting down 20%. With this deal, I want more then 15% cash on cash on my investment. I locked in a 3.5 interest rate for a 15-year mortgage. I was also thinking of trying my best to pay this off in 4 years. But here are the numbers.

Monthly mortgage payments: 1,624 that includes taxes and insurance.

Expenses per year

Utilities: $3,000

Taxes: $7,000

Estimate repairs for investment: $30,000

Estimate insurance: $7,000

Total expenses: $47,000

My rent rolls are based on market rents.

Single family house: $750

Duplex:

Unit one $750

Unit two $750

Mechanic shop rent: $1,000

Vacancy rates: 7%

Total a year: 36,270

Now my question is, is the seller asking for too much? Is this property going to cash on cash return me more than 15%? I'm entering my second deal, and I don't want to get burnt. And I also found another property similar; their asking price is 200,000. If I missed a number or if I sound like a rookie, please excuse me. Much appreciation for your advice.

@Carl Fischer

Thank you Carl for your reply. The deed is under my dads’ name and I did pay the first session of the property taxes which were 1600 I also paid for all the improvements on the house in 2019. The house is under their name and now they’ll be in charge of the property financially and the maintenance.

I bought my parents a house in 2019 cash I have not filed my 2019 taxes yet. The property was not a turn key property I had to do a lot of repairs. Is that 100% tax deduction on the house that I bought my parents? Does anybody know if theirs any tax benefits for my gift?

No yea they have to be replaced.  I guess I’m gonna have to go to a building supply place to get that extra warranty on them. Thank you guys. 

Hey people,

I live in Chicago Illinois I need to repair or replace 17 windows in my property. Anyone knows of a good place to purchase windows that are fairly priced in the Chicago area?

@John Warren john let me know if you can send your contact

@John Warren I don’t do my taxes on my own I do have someone doing my taxes. Would I consider them a tax professional on real estate profits no. And definitely I would love your recommendation on a tax professional and accountant professional.

Hey people anyone knows or anyone can recommend someone that can help me protect my rental profits form the IRS? I’ve been getting taxed to much money on my rental profits. Within these couple of years I have file a lot of tax deductions on repairs on my properties but still ended up paying a lot on my rental profits. I live in Chicago help or advice?

Trying to build a investing team in Chicago for real estate I’m not friendly with the banks currently but I do have the capital.

@Matthew Olszak Matthew I didn’t received any paperwork yet but I did talk to the building department today and they said it was a minor violations I don’t have any court dates. Should I just brush these people off. Apparently the paperwork it’s on its way but it was a minor violations so there’s no administrative hearing.