All Forum Posts by: Jose Duque

Hey all. This year i got a dreaded letter from the irs asking to provide more information on my rental property. In own a 2 family with 3 rooms each. I live in one of the two apartments in 1 of the 3 units. The other two units i use for property related workspace where i keep all the tools and the other unit is pure storage for tools and supplies that im using to restore the damaged property. I do all of my repairs and theres just nowhere else that i could keep my tools so its digging into my bottom line. Unfortunately i had some horrendous tenants in 2019 that destroyed the apt and i was left with a need for storage and so i know it sounds like over kill but now im in a 3 unit apt where im claiming home office deductions for 2 of the three units. The irs would like to see cash flow from 5/6 total units but due to issues in 2019 now im only getting money on 3/6 i live in 1/6 and the remaining 2/6 are all storage and office space for tools and maintenance related equipment. Did i do something wrong or should i be worried

It's been a tough week for me, but you guys have given me the energy and encouragement to continue walking down the path of REI. I love my parents no matter what, but like many of you said, it's my life and I have to live it without being scared to do things differently. Thanks everyone for all of your advice and support!

@Paul Bowers I hope she comes around, we need more young investors! Congratulations on your first property by the way.

@Karen S. I totally know what you mean. There were a lot of places i turned down because i saw them as un-doable (at least for someone like me with almost no repair experience.) But i just bought my first tool set last week, and I am looking forward to learning!

@Steve K. You are right, I think it is a generational, i've always had a tough time trying to reconcile our differences when it comes to financial decisions. Hilarious post by Lee, thanks for linking it - it put a smile on my face

@Linda S. I think you hit the nail on the head. At least it's good to know i'm not the only one who has been through it =) . I've been getting involved in my local REI group, and hopefully i will make some new friends with an investors point of view.

Thank you all for the responses. I guess it's hard to get those we love to see things the way we want sometimes. I really appreciate your kind words and i'm happy to be able to rely on such a wonderful community to make me feel confident again. I'm gonna stick it out like I planned and put the work in, and hopefully they will be proud of me next time they visit

Thanks for your reply Steven. That makes me feel a little better, I'm hoping that in a couple of months they will change their mind.

Hey guys,

I came here seeking some advice/support on this. I am a new investor who is closing on my  very first property (a house hack) within a month. Now the place doesn't look amazing, it needs some cosmetic work, but it cash flows for days, it is structurally sound- no big ticket expenses, as well as it is located in a really desirable area for student housing. I was the happiest man around ...until my parents came up to see the place. No matter how hard i tried to assuage their feelings about this place they could not see behind the grime and the dirt. They hated it so much that my mom cried and basically made me feel like a turd for buying it. Now yes, this house was cheap and with my engineering salary I could buy something nicer, but they did not care at all about the cash flow. I haven't been able to sleep because there is no way i can back out of this deal without getting sued since we are so close to closing. I'm not sure I even want to back out, because I am confident in my estimates. I just feel extremely disheartened to have worked so hard to find this property and to be talked down to. Sorry, maybe i'm just ranting. Has anyone else had experiences with supportive family or friends?

@Michael Seeker, @Andrew Johnson, thank you very much for your feedback. @Thomas S. The math works out with the seller offering 20k at 5% for 4 years. 

Hi all,First time posting on BP, could use some input on my first deal. I have a prospective contract on a student rental that generates about 2.4k in rent, it is one of the better cash flowing properties that I have found at a great price per room for my area (about 20k/room). Price is 120k (so its 6 rooms) and the owner who is an investor himself does not want to go below 120. Problem is that there is no chance that the house is going to appraise for 120, so the owner wants me to get a second mortgage for the difference since i won't have enough time to make up the difference myself by closing. This is one of the best cash flowing properties at about 540/mo that I have found in months and I would hate to loose it because I am too scared to pull the trigger. Thoughts?