Green Renovation?

Question

Hello, I am new to the forum, and am interested in focusing on a niche market, renovating older buildings using green building techniques.  I'd like to hold on to the properties and rent, but think I might need to sell them in the beginning to build up my cash.

Does anyone have any experience in this?  I've read green building costs are 2% higher than regular building costs, but don't know how this would translate to a renovated house as opposed to a new building.

Just Don · Answer

One way to go green and save money,,,DONT tear out cabinets like the flip shows do,,,with a sledge hammer.

Takes little time to unscrew regular box cabinets and keep them nice.  There is a HOT market for them at 300-500 a set

People rehabbing older homes on a small budget,or for garage cabinets

Jenny F. · Answer

If you truly want "green" renovations its going to cost you a lot more than 2% more and be careful to do your research as to what is truly green.

You can be green with your toilet by putting a small bottled water in the tank.  It tricks the tank into thinking its full while using less water at flush time.

Just Don · Answer

I was thinking of buying one of those dual flush stools that save alot of water,,,till I found out they cost 500 bucks.

Most regular 1.6 gallon flushers are 100 bucks or less

THEN I remembered,,i dont use enough water in a billing period to get over the minimum.  SOOOOOO I get NO value out of doing that very thing

On second thought,it would be a waste of 500 bucks since the one I have works fine.

Point is,,see how much real green costs??  That 2% is all smoke and mirrors.  I saw recycled floor tile too,,,costs over 10 bucks a square foot when regular tile is at most 2-3.  How can that make sense??

IF the price is equal or less,go green,,if not, dont.

Just Don · Answer

masa Don,
What makes that green?

sounds pretty brown to me since the tenants NEVER keep the doors or windows closed nor the lights turned off,,,you name it they WILL waste it!!

I would NEVER buy a utilities paid by owner building,its a brown monster of expense that WILL swallow you up,,,AND tenants dont pay enough extra to pay for the costs!!specially cranked to 85 in there.

Masa Don · Answer

I have a good friend in the business, he is doing market reasearch currently, I am really curious about this as well.

I did a cost analysis and found that it is not very profitable to flip, however I am really curious about renting.

An example is a place I am looking at an 8 plex that does not have individual gas and electirc thus land lord must foot these costs. So since I would have to foot the costs I am waiting for the market reasearch to see if I would be able to charge a premium for rent givne a green apartment complex

Joel NA · Answer

I enjoyed the posts on this topic, but I'm surprised this topic didn't generate more discussion. I too have been thinking about green rehabbing. I thought that college kids at the university in my town would possibly pay a premium to live in a "smart" building or a green-rehabbed building. Obviously it has to be a $ maker on top of green....

Of course you'll spend a lot more on an full-tilt green rehab....but you can offset some costs by reusing some materials (the greenest practice of all) as well as charging more rent because of lower utilities and the appeal to a certain clientele...

I also thought that there might be some political capital involved in rehabbing green...maybe even grants or sponsors....

Phil * · Answer

You can do somethings to be green without digging into your pockets.

Here are a few ideas that I try to do when possible ..

- List old building materials/sinks/faucets/lightfixtures/garage items on Craigs List FREE section. (youd be supprised how many people want your 'junk' .. I had people fighting over 50s wall paneling!)

- Use bamboo or Cork instead of hardwood. (sustainable resource)

- Use energy efficient light bulbs or dimmer switches (I heard E/S bulbs have mercury in them so I stay away from that)

- Install a day/night programmable thermostat

- Replace windows with double-pane LOW-E.

- Install added insulation (attic, basement ceilings, ect)

- Install Energy Star appliances

- Convert oil furnaces to gas if possible.

- Upgrade furnace to high-efficiency unit (90+ rating)

- Convert oil water heater to gas if possible.

- Recycle: demo, paper towels, drink bottles, ect.

- Replace the toilet (old toilets use a lot more water!)

Jeffrey K. · Answer

This "green" thing is just a fad.  As an investor you should evaluate the benefit of marketing to this niche.  A lot of these new buildings are designed differently to be "green," do not give up your profit to try to save the environment.  You would be called a philanthropist not a rei.

Rich Weese · Answer

There   are different "shades" of green. Bright green will cost you a lot more than 2% imo. You might get your appliances, ac and windows green for 2%. I think there are other

Christopher Morales · Answer

I would like to hear more information on this. Keep us posted!