All Forum Posts by: Daniel Hennessy

Good point on the closing costs. 

There's plenty of room for a bedroom & it only requires a wall (there's already a big closet in that space), so it's pretty low hanging fruit. 

Thanks for your advice! 

@Stephanie P. Thanks for this reply — my head is in a similar space (is this worth it). The only factor that I should clarify is that I would use cash on hand to add that additional bedroom (and remove an undesirable tenant), which I hope would add something to that valuation — I've read the 11% range is not unreasonable (*please comment on this, anyone who's done this before). Assuming the bedroom pushes up the value a bit, the math then looks like a $230K value, minus 30%, leaves me at $161K, and taking out my additional equity would put about $26K in hand for my next purchase. 

The extra bedroom would easily net me another $3600 / year, so I'm thinking about doing it anyways & optimizing the rents. My risks are project overage costs, and getting an appraiser to see things in a good light following the minor renovation, but again, this project would pay for itself pretty quickly anyways, so it seems like a good idea at this point. If the appraisal didn't go my way, I would have a more valuable building pulling in more money every month, and (hopefully), a tenant who doesn't park on the lawn & smoke. 

Hey thanks, Jerry! This is strictly an investment, so I'd be looking at 70%, which might still be worthwhile. Any thoughts on how accurate zilllow estimates are relative to where you see appraiser come in at? 

Hey investors! I have a 2-family property that I purchased in 2017 that I'm looking to cash-out re-fi. It's value is about $210K, and I have 75K in equity. It has 3 beds down & 2 up, with room to expand. I want to add another bed up (which should push my value up into the 230K range) & then cash out re-fi to (help) finance another property. Any recommendations on a lender? I really want to work with a straight shooter when it comes to rates & points.