Thinking about Solar and Geothermal for 4plexes
Hello!
I will start by saying that my goal is to have enough cash flow to support my family if I didn't have a job. To do this, I obviously want to purchase more properties, but also make the correct investments in my current properties(3 4plexes) to increase cash flow and instant equity.
One idea that I have to do this is to look into renewable energy such as Geothermal and Solar. Currently my tenants pay for electricity only and have window units in the summer. By putting geothermal in, I would decrease their cost for AC and my cost for heating. If I also put in solar, I could take over electric as well. With this cost savings to the tenant, I could split the water and put trash back on the tenant as well.
Conservatively, I am assuming that this would decrease expenses by $250 a month, which would increase the value of the property by about 30K using a 10cap.
I am not sure how much either of these cost yet, but does it make sense to pursue this if the cost out of pocket would be less than the property value increase from the decrease in expenses?
Does anybody have experience with Geothermal or solar ROI?
Will Geothermal even work in a 4plex?
Thanks!
We have been converting the lighting in our properties to LED fixtures (no bulbs) over the past 3+ years. We have one property which is entire LED light and the others all have LED lighting in common areas and outdoors. Our house meter power consumption is down by as much as 70% depending on what other fixtures or appliances are drawing power.
In these scenarios, particularly where outdoor halogen lighting was replaced, the migration to LED lights should pay for itself in 3 - 4 years.
Ductless heat pumps can be wonderful - we are using the Mitsubishi Mr. Slim (MSZ-FH??NA) family as they best cold climate performance (until someone else makes a leap forward). One thing to consider with ductless is the layout of your units .... the more open and better air circulation, the more effective a ductless unit will be.
However, as several of us stated above and your energy audit revealed, you get the most bang-for-your buck by improving the air sealing (first) and insulation (second) of the building envelope.
While solar photovoltaic (electricity) is not economically viable here (or in most of NA), we have had success with solar thermal as a heating source for domestic hot water.
