Turnkey or Home PV installation?

[Ryan Esaki]

I just finished reading Scott Trench's book 'Set for Life'. I really enjoyed it but it got me thinking. I had been set on going out and looking for a new rental property, maybe turnkey to add to my portfolio. However, after reading the book, I've begun considering installing a PV system on my home instead.

My logic is, the markets seem eerily similar to '07 where prices are high, investor confidence is super high, and people who shouldn't be jumping into real estate investing seem to be. I really think we're due for a recession or at least market correction in the near future. With the combination of overpriced inventory and the possible correction, investing into a PV system for my home is starting to sound like a better investment in terms of ROI.

In Scott's book, he talks about saving post tax money is just as important if not more important than raising income. With the Federal and state tax credits for PV systems (up to 65% on the price of the installation where I am) the cash on cash returns for the system are well over 16%. I just don't see any investment property topping that currently. This isn't money coming in though, just money that I'd be saving every month.

I am interested in getting feedback on my thought process. Thanks for your time!