All Forum Posts by: Chris Coleman

@Matthew Jones a few things I would consider before doing this...

First, if you don’t already know, I would make sure I know exactly how much equity I have in my home right now...before any additions.

Next, I would get with a realtor, maybe a few, and get a very good idea of how much additional value these additions would actually add to my home.

Then, I would to contractors to get as close of an estimate as possible as to both the cost AND time of these additions.

Now given all that information, is it worth it to invest the cost and the time involved in the additions? Will it increase your equity a substantial enough amount and soon enough to make it worth it, versus using the existing equity you have now?

@Duke Giordano this seems fine, although not common to see this in the numbers/returns presented by the Sponsor.

You'll often see Cash on Cash Return both without sale and with sale. But not generally IRR.

Also, if you're comparing potential investments using IRR, then of course make sure your comparing apples to apples in which IRR you're using.

@Daniel Lozowy If you know a broker, ask them to reach out to the Owner for you.

@Nick Cooper

There is a major difference between destructive debt and smart leverage. DR teaches and preaches against destructive debt, which is good and everyone should adhere.

But if you want to be successful and grow as a real estate investor, then you need to make it a goal to learn and use smart leverage, which Js what @Joe Villeneuve is describing.

You should do the analysis to answer the questions from @Joe Villeneuve. You’ll see the power of smart leverage.

@William Coet you can start by simply going on Rent.com and searching by the city or zip code and it will produce a list of rentals, give info on the apartment property. You can filter from there.

Nice. With the frequently climbed mountain and a college...have you also thought about doing Short Term Rentals like AirBnB?. May be a good play if the town regulations allow.

Ive always done 30 years/conventional on SFRs...until I maxed out.

@Matthew Reid yeah, what @Aaron K. said. If the owner hasn’t thought anymore about it, then he could likely not even be aware that the city will come after him. You can nicely let him know and offer to help take the whole issue off his hands.

@Jonathan Denney no, it does not. You can go with whatever lender will give you the best terms on a HELOC. I've had good experience with PNC.

@Marcy Janke sounds like a bit of a risk and honestly more stress than it’s probably worth for $35K. Plus, I would not want to be holding and speculating on whether oil goes up anytime soon.

I would just sell it and do something good with your profits.