You are literally losing out on thousands of dollars of income annually by gambling on appreciation.

I thought it was an extreme gamble, and that he could lose everything.

This in itself should bring the value of the property from $5,600,000 to $7,200,000 (and this is considering a more conservative exit cap rate of 100 bp above the enter one), so at the end of the day the increased value would make the investment IRR in the 15-20%.I have a considerable amount of my portfolio in the stock market and believe me, no 2.5% dividend yield stock is going to deliver that performance over the next few years, especially considering the current inflated P/E ratios in the market, unless we gamble on ridiculous appreciation, so I fail to see how your comparison is fair.

Home warranties are basically gambling that you will at some point you will collect on it and hopefully it will cover the repairs without costing you too much.

Then they have to go back on the market and unless they do get a cash offer (which idk about your market but in mine it's a gamble) then they are still looking at 30+ days plus any days on market before receiving that.

Buy in midwest and take some to the casino to gamble lol.

Probably a slight loss after the second set of closing costs, and that's with the gamble that interest rates don't rise.Option 35.5% for commercial loan 65% LTV for cash out. $357.5k5 year balloon, 25 year amortization10% line of credit at prime +1One plus here, I won’t be paying interest on money I’m not using.A big concern is timing.

Unless you just really like gambling or have money to burn, in which case, by all means - roll the dice if that's your thing.Further - contractors and suppliers are SO damn busy these days with all of the construction going on around here that getting a renovation of any real scale completed correctly or a new construction job done is a very serious challenge in and of itself and takes a great degree of skill, care, TIME, connections, and probably some luck.

Would you really want to gamble on continued appreciation, instead of cashing out?

Also, if you get an unwanted caller, you can mark it as spam and the caller will get a "this number has been disconnected" message.