All Forum Posts by: Kyle Deutschmann

Quote from @Russell Brazil:

Quote from @Kal Wol:

@Martin Smith I live in Germantown Maryland and I wanted to invest in state or neighboring VA or DC to stay close home as I am starting this journey out.

So Baltimore houses have low entry with high risk. And I am trying to find out if I can get the best area in Baltimore it will solve my problem of low entry and better risk as compared to unknown areas that I don't have visibility.

Also, I am showing lots of interest in Baltimore, and also in some part of DC, and am thinking in a couple of years from now, it might be a good investment opportunity. So these are the driving factors that I am looking into it.

 You could consider Canton, Federal Hill, Fells Point. Entry pointes will be $375k plus generally. 

Russell is absolutely correct about Canton, Federal Hill, and Fells Point. I’d add Butcher’s Hill and some blocks in Mount Vernon to the list. 

Baltimore is one of the more affordable entry points in the region - you’re also right about that. But a lot of the issues with Baltimore are structural in that it is an extremely pro-tenant political and legal environment, the utility companies can be difficult to deal with, and the permitting process can be cumbersome. For those who have the stomach for it, Baltimore can be a great choice! But, it’s not necessarily the best option for every new investor. 

DC has a LOT of benefits - top among them that it is geographically limited. If you want to live IN the District itself, there’s only 68 square miles of it, and a big chunk of that is taken up by parks, roads, and commercial property. Out of the remaining space that’s residential, significant portions are covered under historic districts, and all of it is covered under the Height Act, which means that there is simply a maximum volume of cubic feet of real estate of any sort that will ever be available there. That kind of unalterable limit on supply can be very helpful in driving values if demand stays strong. But, DC also has an extremely high barrier to entry in the form of those solid property values. That makes DC a great choice for the long-term landlord, but it means making anything cash flow within the first few years very difficult. 

Given that, I like the third point in the triangle - Frederick. Strong demand (fastest growing county in the state), limited supply downtown due to the historic district, limits on sprawl into adjacent counties because of natural resource management issues, somewhat less onerous landlord regulations, and the ability to find some properties that cash flow at least a little bit right away. It’s not nearly as easy as it was when rates were 3%, but it’s still doable if you know what to look for (and where!). Frederick also has a lot of long-term landlords who are getting towards a point where they want to retire and sell, and some may even consider seller financing. I know one building downtown that just went under contract where the seller was considering that. Frederick also still (for now) mostly allows AirBnB, which is an added bonus for folks who are interested in that. 

Overall, this region is a great long-term play. But the short term is difficult, so make sure you’re prepared for that! 

Thanks to the huge tax perks available to those who build more green properties, it’s a win-win scenario of being able to help the environment while also being rewarded financially. If you’re a builder, homeowner or investor, this article is for you and how going green may help your bottom line.

Financial Incentives for a Building a Sustainable Property

• Tax Incentives: Project costs may be offset by 30% or more due to improvements qualifying for federal tax deductions and credits.
• Long-term savings: Environmentally friendly upgrades such as low-flow plumbing, ENERGY STAR appliances and solar panels can help cut energy bills significantly.
• Increased property values: Energy efficient properties typically have higher rental incomes and property values.

Tax Credits Available

• 45L Tax Credit: You can receive as much as $5,000 dollar-for-dollar tax credits for residential dwelling units that are considered energy-efficient. For more details, see the article linked. Energy Savings Credit for Your Property! (biggerpockets.com)
• Section 179D Deduction: If you install qualifying energy-efficient systems in existing or new commercial buildings or residential buildings over 3-stories, you can deduct up to $5.00 per square foot. For more details, see the article linked. New IRS Guidelines for 179D Deductions! (biggerpockets.com)

If you are wanting to take advantage of the financial incentives and tax credits, be sure to work with architects, contractors and designers that specialize in building energy efficient properties. This will help ensure that your property meets the efficiency standards and technical requirements in order to qualify for the tax breaks.

Additionally, be sure to have conversations with your CPA before starting these projects as they can help ensure you are getting every deduction and credit that you qualify for and teach you what proper documentation will be required to support the credits and deductions.

Are you building green? If not, what questions do you have for me?

Hello, I'm Garshét! I reside in Maryland, I am a recent college graduate, and I am very new to REI. My degree is Business Administration with a track in Entrepreneurship. I have always heard about REI being a solid way to make money, but have never taken the time to get into it or do my own research. Fortunately, I have a great support system in my parents; they are invested in helping our family gain knowledge and wealth to "escape the rat race". My dad bought us the House Hacking book and I am currently on Chapter 3. I look forward to learning about all the different ways to achieve financial freedom and networking with experts. Thank you.

Me and @Kyle Deutschmann are proud to bring back Central MD REI Social. A truly informal meetup of investors of all types and experience levels, No sales pitches (In fact I might talk you out of buying), Good Food, Good Beer and Great People! Come hang out with us!

https://www.wave3.com/2023/10/30/new-solar-panel-production-...

So we bought a house several months back and we are in the process of rehabbing it now. The previous owner had purchased solar panels almost 7 years ago and stopped making payments on them about a month or two in. This means that the solar panel company cannot continue to report on his credit in a very short time from now.  He understands that we are not going to pay off the solar panels. Also, the solar panels were never connected as a lien against the property according to the closing attorney so we have already closed on said property.
After giving this backdrop. I’m assuming that the solar panels would not work without some kind of authorization from the company that installed them. So what do we tell the next buyer?

Hey, there’s some nonworking solar panels on your roof.

Hey BP family! I was wondering if anyone has experience with a rental property that has a solar energy system (with battery storage and net metering). I'm curious as to if it's feasible to offset the electricity portion of NOI and receive a boost in property value that is greater than the cost of the solar system installation. If anyone has an opinion on this concept I'd be glad to hear it.

-Callaway

Quote from @Kyle Deutschmann:

Quote from @James Hamling:

Quote from @Kyle Deutschmann:

Quote from @James Hamling:

Quote from @Corby Goade:

Quote from @James Hamling:

Quote from @Corby Goade:

Quote from @Kyle Johnson:

Hello All,

I'm just curious. Will getting solar add any value, marketing and/or rental value to your SFH rental? Is it worth doing?

I can see it may add some marketing value but that's it. Curious if other have done this if they have a SFH rental.

If you ask a solar salesperson, they'll tell you it adds all kinds of value, but I've never heard of anyone getting any value out at the sale of the home. In my market, it makes them harder to sell, at best. If your tenants pay utilities, I'm not sure why you'd take on that debt. 

I don't sell solar unit's, I sell Real Estate. And what I have seen and experienced, 1st and 2nd hand, is when solar is PROPERLY utilized as a feature, it's lends a ROI of about 150% on just the unit pricing/value increase, which is saying 0 calculus of impact on utility offset's.

No, it's not a Blue-Collar real estate thing, it's for the property types that garner and most likely have a buyer/tenant with a Tesla. 

And all this about liens and so on, I have no idea what all that is about. Adding solar to a $800k+ home is cheap, dirt cheap in the big picture of things. Yes, on a $200k property I bet the cost to add solar is a big price tag in comparison to property price, but why on earth would you put it on that property? 

Again, as I have said previously, it's about amenity and property MATCH. 

If you think nobody value's a solar system, that it's a waste of $, that's just a statement of what income/wealth class your working in, that's the raw truth of it. There is a market for it, just like there is a market for luxury rentals, you may not be familiar with it but it exists. 

 I won't argue, you make some good points. I doubt it has to do with the "class" of property, I work in a market that has the cheapest electricity in the country, so that likely has a direct effect on the resale value of those systems. 

My experience with it, it seems to have all but nothing to do with electric bill off-set, seriously. Seems to be more a status thing. The only utilitarian place I experience any caring is connecting with EV charger, people love that, buyers and tenants. And again, I think it's more status symbol or some form of ego-stoke, everyone I've asked on #'s of savings etc., not a 1 has any idea, but they have all kinds of answers about how it looks, how cool, modern etc. it all is. 

Are you suggesting to your clients to install an EV charger but no solar? Doesn’t that defeat the point of getting an electric vehicle if you’re charging it from your coal and/or gas powered house? 

I’m not in your market, but I’d be happy to chat sometime and share with you my experience with solar and how it indeed can add value. I’ve been around the industry since a child and also spent 5 years in mortgages, so my question is often.. you’re telling your clients to OWN their home vs renting. Why not OWN your power and protect your clients against rising utility rates? As the demand for electricity continues to rise, so will utility rates…

Also, does every client want a pool? No. Similarly does everyone want solar? No. But it DOES save you money compared to the utility in the 3 states I operate in and it DOES indeed add value. Im happy to show you some data to change your mind :) 

No, I was inferring, and now out-right stating and I DO state/do, the very opposite of URGE when/if doing solar or have solar, one really should have an EV charger also. 

Solar without EV charger is like a burger without the bacon. 

And as I said, in my experience it's the concept of solar that people are all about, and in my opinion the status/ego of it, not the actual metrics of the numbers because everyone and I do mean LITERALLY every one of these consumers I have asked, not a 1 could tell me what those #'s were, not-a-1. But, they all said it was saving em a "bunch of $", lol. Not sure how they know that if have 0-clue of the #'s. 

But hey, like I said, I don't care about any of that. I care on what tenant/buyer it get's me and the ROI for the amenity, time to list saved, competitive advantage, my care is in the monetization side of things and NOT in schlepping solar to people.

If it were an alligator pit the market were happy to pay similar ROI on I'd be doing alligator pit's.

 Sorry I think I misread your message.. I thought I was the lone soldier on here defending solar haha. I would be happy to chat sometime and show you some numbers how it does truly make sense, at least in my market, to go solar. You can get instant monthly savings using a PPA or long term savings by paying cash/loan. 

The payback/ROI is about 7-10 years in Maryland and about 3-5 in DC with all the incentives. Once you pay it off, you're locked in for free energy for the remainder of the solar panels useful life. Our panels are warrantied and guaranteed to last at least 25 (altho they're actually designed and engineered to last about 40).

Battery technology (i.e. the SunPower SunVault or Tesla Powerwall) is where the bigger 'cost' is comparatively. Solar is where you get all the return on your investment. Batteries on the other hand are indeed still a luxury to have backup solar power during a blackout, which frankly doesn't happen often in my area. However, for states with bigger electric grid issues, I would definitely be considering a battery at some point if you want to have your own energy security/independence. 

Maybe you should share with everyone what $ your making selling these systems, and your sales volume. If they don't get it then, they never will. Because you and I know your making crazy $-BANK-$ and that's not possible unless consumer wanted it, in mass, right. 

I think it's just many are in asset-class / tenant-class who has no financial capacity in what still is categorized a "luxury" item. Before that term rub's you wrong, it's categorized in that manner just like a pool or hot-tub because it's a non-necessary item in most cases, as most properties are grid connected. 

BUT.... just wait until the U.S. has there 1st year of load-shedding, that whole categorization will change in a flash. In South Africa, everyone who can get solar is getting or has solar, because there is load-shedding. 

And yes, the U.S. WILL with 100% certainty have load-shedding unless the gov. takes rapid action. It's simple math, ALL electric producers in U.S. are SCREAMING that it's now verging on emergency status that they be allowed to construct MANY more production plant's. IMMEDIATLY. And for those not in the know, on average just the permitting process for such takes on average 7years. A new production plant can easily take 20yrs from date of decision and funding to coming online. And in U.S. we have coal plant's set to shut-down in coming years because of inability to replace wearing out major components because there no longer permitted. So removing power plant's via standing regulations. 

I give it 1-2 more hot summers at this pace before load-shedding starts coming into the mix of things. 

Any who don't believe me, do your research, look up the white papers by xcel energy. They've been sounding the alarm for years warning of what's coming. 

Quote from @Kyle Deutschmann:

Quote from @James Hamling:

Quote from @Corby Goade:

Quote from @James Hamling:

Quote from @Corby Goade:

Quote from @Kyle Johnson:

Hello All,

I'm just curious. Will getting solar add any value, marketing and/or rental value to your SFH rental? Is it worth doing?

I can see it may add some marketing value but that's it. Curious if other have done this if they have a SFH rental.

If you ask a solar salesperson, they'll tell you it adds all kinds of value, but I've never heard of anyone getting any value out at the sale of the home. In my market, it makes them harder to sell, at best. If your tenants pay utilities, I'm not sure why you'd take on that debt. 

I don't sell solar unit's, I sell Real Estate. And what I have seen and experienced, 1st and 2nd hand, is when solar is PROPERLY utilized as a feature, it's lends a ROI of about 150% on just the unit pricing/value increase, which is saying 0 calculus of impact on utility offset's.

No, it's not a Blue-Collar real estate thing, it's for the property types that garner and most likely have a buyer/tenant with a Tesla. 

And all this about liens and so on, I have no idea what all that is about. Adding solar to a $800k+ home is cheap, dirt cheap in the big picture of things. Yes, on a $200k property I bet the cost to add solar is a big price tag in comparison to property price, but why on earth would you put it on that property? 

Again, as I have said previously, it's about amenity and property MATCH. 

If you think nobody value's a solar system, that it's a waste of $, that's just a statement of what income/wealth class your working in, that's the raw truth of it. There is a market for it, just like there is a market for luxury rentals, you may not be familiar with it but it exists. 

 I won't argue, you make some good points. I doubt it has to do with the "class" of property, I work in a market that has the cheapest electricity in the country, so that likely has a direct effect on the resale value of those systems. 

My experience with it, it seems to have all but nothing to do with electric bill off-set, seriously. Seems to be more a status thing. The only utilitarian place I experience any caring is connecting with EV charger, people love that, buyers and tenants. And again, I think it's more status symbol or some form of ego-stoke, everyone I've asked on #'s of savings etc., not a 1 has any idea, but they have all kinds of answers about how it looks, how cool, modern etc. it all is. 

Are you suggesting to your clients to install an EV charger but no solar? Doesn’t that defeat the point of getting an electric vehicle if you’re charging it from your coal and/or gas powered house? 

I’m not in your market, but I’d be happy to chat sometime and share with you my experience with solar and how it indeed can add value. I’ve been around the industry since a child and also spent 5 years in mortgages, so my question is often.. you’re telling your clients to OWN their home vs renting. Why not OWN your power and protect your clients against rising utility rates? As the demand for electricity continues to rise, so will utility rates…

Also, does every client want a pool? No. Similarly does everyone want solar? No. But it DOES save you money compared to the utility in the 3 states I operate in and it DOES indeed add value. Im happy to show you some data to change your mind :) 

No, I was inferring, and now out-right stating and I DO state/do, the very opposite of URGE when/if doing solar or have solar, one really should have an EV charger also. 

Solar without EV charger is like a burger without the bacon. 

And as I said, in my experience it's the concept of solar that people are all about, and in my opinion the status/ego of it, not the actual metrics of the numbers because everyone and I do mean LITERALLY every one of these consumers I have asked, not a 1 could tell me what those #'s were, not-a-1. But, they all said it was saving em a "bunch of $", lol. Not sure how they know that if have 0-clue of the #'s. 

But hey, like I said, I don't care about any of that. I care on what tenant/buyer it get's me and the ROI for the amenity, time to list saved, competitive advantage, my care is in the monetization side of things and NOT in schlepping solar to people.

If it were an alligator pit the market were happy to pay similar ROI on I'd be doing alligator pit's.

Quote from @Kyle Deutschmann:

Quote from @James Hamling:

Quote from @Corby Goade:

Quote from @James Hamling:

Quote from @Corby Goade:

Quote from @Kyle Johnson:

Hello All,

I'm just curious. Will getting solar add any value, marketing and/or rental value to your SFH rental? Is it worth doing?

I can see it may add some marketing value but that's it. Curious if other have done this if they have a SFH rental.

If you ask a solar salesperson, they'll tell you it adds all kinds of value, but I've never heard of anyone getting any value out at the sale of the home. In my market, it makes them harder to sell, at best. If your tenants pay utilities, I'm not sure why you'd take on that debt. 

My experience with it, it seems to have all but nothing to do with electric bill off-set, seriously. Seems to be more a status thing. The only utilitarian place I experience any caring is connecting with EV charger, people love that, buyers and tenants. And again, I think it's more status symbol or some form of ego-stoke, everyone I've asked on #'s of savings etc., not a 1 has any idea, but they have all kinds of answers about how it looks, how cool, modern etc. it all is. 

Are you suggesting to your clients to install an EV charger but no solar? Doesn’t that defeat the point of getting an electric vehicle if you’re charging it from your coal and/or gas powered house? 

For most EV owner we charge the car in the office where price is subsidized. There's no immediate need to install EV charger and solar.