All Forum Posts by: Alisa O.

Right now courts are closed so even if you have a 100% winning case, you will have to wait. Cases from March 2020 haven’t been processed. 

Another way: swallow your pride and try cash for keys. 

Good luck. 

James, 

You already have the answer. In your situation it makes sense. There are only 2 points I would be interested in before I signed the contract: 

1. You mentioned those newer Sunpower panels that would guarantee 92% efficiency at year 25. I would be interested in their cost. 80% is good, but 92% will allow you to use the panels a bit longer than 25 years (if the actual roof will withstand). Who knows, you might squeeze a few more years out of them. Even if you are making $3000 or ever $2000 vs $4000 at optimum capacity, I don't think you would find it too offensive. Also, you already know the Sunpower technology exists and is out there. If the cost makes sense, I believe its better to buy the latest more efficient model if the funds permit. As an analogy think of it as buying this year last year's model. 

2. Biden is seriously pro "green" and alternative energy. He wants to invest $400 billion over 10 years. Even if he doesn't get the full amount, he will continue pushing to get something. I see additional tax credits and incentives in the near future. Can you wait a few months to see what he will come up with? You might find it beneficial.  

My friend is one of the pioneers in solar energy farms in Erie County NY built a solar farm with his business partner. Right after they bought a hotel and converted it to the apartments and everything to electric.  They will use energy from their solar farm to energize the building. He was telling me his numbers and they sound really attractive. The bank really loved that solar component as well. Whats interesting in his situation is that he will be offering an all inclusive rate for the apartments. Tenants can budget the same amount every month and don't need to worry about the additional bills. While my friend will have one bill for the building, which he would cover with the solar credit from the farm, the tenant essentially would save the base delivery rate for gas and electric, even if they don't use any utilities. For some tenants this saving is crucial and one all inclusive apartment bill is a huge benefit. My friend and his partner will get extra income, just like you will. Our cost in Buffalo is about 18c/kwh and it still makes sense to go solar. 

You are on the right track. 

Hello James. 

Ultimately, I believe the answer lies in your risk tolerance and the amount of your reserves. 

I will start with some questions that you may want to ponder about. 
1. In the summary you are saying that, "my solar system is producing 94% of the year 1 production; the system will produce 9,851 kwh/yr" and in the Details you are saying, "Annual electric usage: 12,000 kwh/yr". How are you going to bridge the gap between production and the usage requirement and whats the cost of both systems (if needed?) and how is it going to affect your depreciation and/or credit schedule? 

2. While the solar warranty is for 25 years, the effectiveness of the solar will start diminishing over time. If you are getting 100% output today, will you get 100% output in 15 years? So, will your numbers work the same? The same is for the shingle roof. Most likely you will have to perform maintenance, but what is the comparison in terms of the initial cost and the following maintenance? 

3. When the solar needs to be replaced, is it going to cost extra to remove the panels and will you need new setup to install the next set? You don't know this now, but most likely it will cost extra. While with the regular roof you just put another layer and you are good to go. In Western NY I can easily put 3 layers on. How costly and how challenging is the new set up with the solar?

4. In the situation of the strong storm/natural disaster/another Sandy and the solar panels getting damaged, how fast and how easily can the panels be replaced? During the hurricane Sandy electricity by the Manhattan beach in Brooklyn (right by the ocean) was restored in 7 days (I believe its one of the longest repairs in Brooklyn. My friends in Bayshore and Halstead and Ronkonkoma got their electric back in 2-3 days), how long will it take to replace the panels if they are damaged? Is there a similar ratio of roofer to roofs as the solar installers to solar roofs? What I mean is, in case of another Sandy/storm, how easy is it to find a solar installer to replace the damage? There are hundreds of roofers out there- its the same concept of installing the architectural shingle in CT or MA or NJ or NY. If the company in NY is not available, there will be one in NJ or other states. While your particular solar system might require particular company in order not to void the warranty. What if there are only 10 installers and you are customer #300? How long is your wait? You are "green" conscious, so you realize with the current damage to climate, another mini Sandy is just around the corner. 

On the other hand, if the panels survived the natural disaster, your property can be the only property on the block to have the electric. 

5. Do you know that there are 50 years architectural shingles? While they may start loosing effectiveness after 40 years and you may need to replace a few tabs here and there, the cost of labor to replace them is pretty low, especially if you buy a square or two extra on the onset. 

6. Are you including the vacancy factor when you are in between tenants? Or, what if the tenant is not paying rent and your electric bill? In Suffolk county it takes months to evict somebody, can you cover the cost of the solar mortgage? 

7. Will the cost of the solar affect your DTI ratio and prevent you from purchasing another property where you can collect rent?

If you strictly think of the numbers, it seems like an interesting opportunity. However, you don't live in the world of only numbers. You have natural disasters and storms that cause damage, you have Covid and tenants who do not pay rent and you have banks that look at DTI ratios. These are real questions that you need to think about.

I just noticed that you updated your initial post. Are you a Tesla sales rep and this whole thing was a promotional gimmick or you do not have any sponsorship with Tesla? 

 

For you it might be junk but for some people it’s valuable. You may consider inviting an estate/auction company to take a glance. Call a few Local companies (They usually advertise on Craigslist) and email them pictures of some of the things. They will be less expensive then some fancy overpriced brand name auctioneers (unless you believe there is something really valuable and need big auction house exposure). You can only imagine the kind of trash people value! My last auction house I bought with some old giant filthy speakers, an old barber chair, old vinyl records and boxes full of really old naughty magazines. I called a couple of guys who specialize in this stuff and put some stuff on Craigslist. Got a few thousand for something my husband was gang-ho about trashing. It paid for the dumpster, new floors and a dinner where my husband had to admit he was wrong- priceless!!!
Than I called my metal guys to let them sift through and pick as much metal as possible. It made a difference in a size and price of a dumpster and my demo cost. 
Good luck!

On top of two other posters’ reasons, there are a lot of accidental landlords, or those who are “afraid to aggravate” their tenants because “they are paying rent on time, especially now”. They apologize to their tenants 100 million times when they are “disturbing” them during the picture taking/listing time.  These are the listings you want because the rents are under market and landlord is afraid of their tenants. Granted, some are plain lazy, but some are just plain scared and tired of “landlording”. If you have enough reserves besides the down payment (most likely have to evict tenants who are used to low rents and scared landlord) see these types of listings as opportunities. 

Good luck. 

Can’t recommend anyone personally, but look into We Work model. They exploded everywhere. 

@Michael B.

I believe it depends on a tenant, not the floor.

We used $4/sq.ft LVP, $1.50/sq.ft LVP, padding, no padding, HD, other brands, it is all the same. If the tenant is careful and doesn’t drag the walkers, chairs, furniture, heavy pointy toys across the floor (which is unrealistic), the floor might survive till the next non-careful tenant. If you allow pets, even with the click waterproof floor you will have a problem with the odor bc the accidental tinkle will leak between the clicks into those little grooves and it will continue to smell, especially if you/next tenant doesn’t have pets. If you have glue on/glue together, any continued water exposure will unglue it. (Snow, small tinkles that have gone unnoticed, spilled water, lazy cleaners, etc)

The floor that is used for commercial use, like shopping centers or grocery stores, designed for foot traffic, not little Johny running across his room in spiked soccer shoes and slip sliding all over the place scratching the brand new floor you installed only 1 month ago or constant dragging of the chairs or pointy toys.

You probably noticed that in commercial application, they use either those carpet tiles that are easy to replace or VCT tile, which is also easy to replace, because no mater what is used, they know they will need to replace some of them. So might as well go with the easier/cheaper replaceable ones.

We now use cheaper LVP because we know that tenants will accidentally/neglectfully ruin it anyway, so might as well save the dollars upfront for the next replacement, which is guaranteed, will take place.

In our opinion, they haven’t invented tenant-proof floors yet.

Everything is known in comparison. Get a couple more quotes, plus compare material prices with some suppliers in the area  

It’s hard to determine whether the price is fair because the nature of the project and the sizes are unknown. For example, the first line item, “bed cleanup and weeding”. You can have 200 square feet or 2,000 square feet. As you can understand, the time involved would be different. Plus, the 200 square feet could be the worst jungle, while the 2,000 sq ft can be basic dirt. Do you see the difference? 

You best bet is research, so you know what you are charged for, and comparison. 

Good luck.