All Forum Posts by: Calvin Thomas

@Griffin Malcolm, I don't have any statistics and I'm not sure there will be any that I would consider reliable. So, here is how I would look at it.

For owner occupied homes, the typical buyer is NOT analytical. They are not able to assign a value to things like roof age. To them a 5 year old roof is in good shape for the near future the same as a 18 year old roof. Also consider that green energy is not universally accepted. Many people on principle alone may not want solar panels as hard as that may be to understand. Demand is what drives up price/value. So, if 25% of potential buyers eschew the concept of solar panels the demand doesn't drive up the price in the same way an above ground pool doesn't add appreciable value.

For functional aspects of the home the buyer usually just looks for potential issues but doesn't analyze the differences for valuation purposes. Where they "see" value is what makes them interested in the home which is how they imagine it will be for them to live in. When a buyer starts talking about how it will be to live in the home you KNOW they are interested. Those aspects of the home are where they "see" value differences for themselves. 

However, for a commercial property or a commercial residential (5+ unit) property value is based on the income approach and reducing expenses in this case by producing electricity factors into that math and very well might increase the valuation enough to make sense. So, from a business point of view with a commercial property it could be a good investment with a good ROI.

If solar panels provided a good ROI on owner occupied homes, then builders building spec homes would include them as standard to reap the reward!

Hi, I am a Real Estate investor in NY who is looking to start a Mastermind Group here in NY. I would love it to be local (rather than virtual). A Mastermind Group by my definition is a small, regular meeting of peers and is free!

Please post a reply if you are interested.

Hey team, question on solar panels and their impact on resale value. Essentially, is it worth it? I had a consultation with a solar panel salesman today and he quoted me 29k for 18 panels, however the final price would be 13k after New York and Federal tax credits plus a holiday discount. At 13k, I would be paying about $100 each month for electricity. There would be no up-front cost either. They would fix my $100 for the next 18 months as a grace period so I have time to put the tax credit money "back in" the full cost of the panels. If after 18 months I don't do this, then the loan is re-amortized and the monthly payment would increase.

It seems like a good deal, and an easy selling point to a potential buyer - "hey, your energy bill will be $100 each month even in the winter, and then once you've paid off the panels you've got free energy!" but I'm just not sure about the tax credits. Like, I understand it comes off my taxable income, but it's also not like I'm getting a check for 14k that I can throw at the panels. I feel like it's more likely I would just have a lower taxable income, but still have to pay mostly the full 29k, which would make the monthly payment closer to $200. 

For context on the property - it's my house hack I've owned about 1.5 years now and plan is to sell in May of next year once I hit my 2-in-5 rights. I'm strictly concerned with ROI and how it looks to potential buyers. If anyone can provide some insight it would be appreciated. Thank you!

 

@Jay Hinrichs  I think that assumes the banks will lower the fees.    Also you can make the same argument for brokers that people make to favor the relator model (i.e. you get a better deal). I am not sure it is true in either case. I also think you can get a bank loan in most states and I don't know what the split is on how many people do. Basically, the big lending companies like rocket and quicken have pushed the home buyer away from local banks and that in part changed the market. My parents weren't going to a mortgage broker, they went down to the local bank. So that was the climate of the 50/60s. We live in an electronic world so people don't favor doing that anymore. And as a builder don't you have a prefered lender who is easier to work with that you refer cliente's to.

@Calvin Thomas Grant funding I think will actually increase prices as the grant money comes from taxes so you are paying it anyway. It will drive up prices to compensate. Other people will want to profit. 

The real thing that will decrease housing prices is increasing supply, either by building more homes in an affordable range (and therefor probably smaller). Or you decrease demand.  Less people become willing to live in high priced areas.  

@Calvin Thomas

agree with you on one.  on two, the institutional buyers...  as far as I can tell, i think this only affects certain markets - Atlanta, Charlotte.  i can't tell how much they've contributed to the increase in prices.  certainly haven't helped.

https://www.fastcompany.com/91215924/housing-market-wall-str...

Hi All,

I would like to hear your comments about the following property, which I think, based on the analysis I made, seems to a be a potential good investment:

* Purchase Price: $98,000
* Monthly Cash Flow: $310
* Annual Cash Flow: $3731
* CoC ROI: 15.86%
* 5-year annualized return: 15.35% (with a profit if sold of $25K)

Also, what are some of the disadvantages of buying old houses? Is there any particular maintenance that is required in a regular basis?

Something I noticed that is making me doubt about making an official offer is that it seems to be in an area with high crime.  

Appreciate your comments.

One or two cans of this and you're all set! $5/can. https://www.homedepot.com/p/Spectracide-18-5-oz-Wasp-and-Hor...

Has anyone had a successful relationship with BongoStays for either furnishing your STR property or management of that property? Since signing a contract with them I am unable to get anyone to answer emails or phone calls and am curious of others experiences.

I will be closing on my 1st STR/MTR this month. I am sooooo excited but also nervous. It is a 1940s 2 bed/1bath that has been renovated by seller. They put new hardwoods throughout the house except in the 2 bedrooms which has new carpet. Arrggg. Question. Should I replace carpet with hardwoods so that they are continuous throughout house? Cost approx $3000. The other STR in my area mostly have hardwoods throughout and I personally don't like carpet which I feel many guests may feel the same. Also, having to interrupt stays to replace later doesn't make sense. I know in LTR the thought is to keep carpet until it gets messed up and then replace. Just want to get thoughts from experienced STR investors.

Thanks so much 

April in GA