All Forum Posts by: Chris Fennimore

@Michael JamesThanks!  I had assumed 1% appreciation in my models, maybe I'll dial that back even further. My partner is on the same page that this isn't an area of appreciation.  I'll start looking at Collingdale as well. We have several properties in Albuquerque, New Mexico that are C- type properties that don't appreciate much, but cash flow well, so we are comfortable with that.  He is pretty good at managing those kinds of properties and we are buy and hold so we can weather what might happen in the next 5 to 10 years.   

@Michael James Thanks.   My partner just moved to the area and we are still checking out neighborhoods.  We are trying to find areas that are C, but stable or at least not going down.  Any suggestions? 

I've just started analyzing some multifamily deals in this area.  I'm curious to hear what kinds of cap rates other people are seeing as well as opinions of the area.   

I'm definitely interested in this question and feel like I haven't found a good source of basic information on this topic.  I'm interested in a similar type project except there would be 4 to 5 people (not two) and my partner and I providing less equity and more sweat.   

I just sent my first round of letters in the multi-family space.  I made a word template to look like hand writing on a college ruled paper.  I got a 2 calls out of 180 letters (1% response), but both were promising. I'd be interested to hear from people that have been doing this longer about their approach.   

Hi, I would be interested as well.  I buy 4-12 unit properties in New Mexico would like to discuss and learn from others about their approaches.    

@Dante Pirouz This is just my opinion, but SolarCity sells people a 20 year Power Purchase agreement, saving the client some money on their bill, but over the life of the system paying an enormous amount of money for the solar system.  If you look at the numbers it is great for SC, not great for the customer.  The rely on marketing and high pressure sales to try and push people past that fact.  They've also grown so quickly there are sales people who are not always knowledgeable and under a lot of pressure to close.  In their history, they've never turned a profit and if Tesla hadn't just bailed them out, they could have been in serious trouble leaving customers in the lurch for the operations and maintenance of the system (see SunEdison for what this looks like). I would look at reputable local companies first and using leasing as a way to finance if you don't have the tax appetite. 

@Jered Sturm What you are describing can make the project more expensive- multiple points of connection, additional interconnection paperwork with the utilities for each meter you are connecting to, and multiple roof installs.  I'm happy to look at a final proposal if you want to send it to me.  

@Jered Sturm@Marc C.I work in commercial solar for my day job, so this is something I have encountered with property owners asking this same question.  In general, solar for multi-family works in cases where the common area bills are higher than $300 or it is mater metered.  One big roof is more cost effective than putting panels on multiple smaller roofs (depending on the project, that can be a deal killer).

You're meter will spin backwards when you are making more power than using and get credits on your bill to offset times when the sun isn't out, but you can't over produce and get money.  

There is a 30% tax credit (not deduction, but dollar for dollar credit) and accelerated depreciation (6 years) which depending on your utility expenses make the payback anywhere from 4 (CA, HI) to 9 years, so more than likely it should be a property you plan on holding for a while.    

If you don't have the tax appetite, you can get an operating lease where the financing company will take the tax credit and you'll have lower payments.   I would steer clear of SolarCity and their PPA's.   I agree that their roof shingles probably won't make sense for a few years and are mostly for high-end customers. 

Hope this helps. 

Hi Curtis, you might have to make a new profile.  I'm no expert though, but it doesn't seem like you can change your user name once you start.  I live in the Bay Area, but all my rental properties are in ABQ, so I'm down there a bit.  How is the market down in the SE?  

@Jens Nielsen Sorry, I didn't see the other question.  I use State Farm.  Does that help?