Thinking about Solar and Geothermal for 4plexes

[Austin Davis]

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!

[Russ Draper]

Why are you even considering this?  Spend the money on separating out the utilities so that the tenants pay the bills!