All Forum Posts by: David H.

@Ed Emmons

Thanks Ed!

I’ve been weighing the gas boiler vs the heat pumps and keep leaning towards gas for a couple reasons.

My basement floors a bit and the lowest point is the oil boiler down there now. For some reason it is in a square cut out a foot and a half deeper than anywhere else. Durning that big rain storm in December the water rose from underneath the cement floor and started to flood the boiler. I had to pump it out with a shop vacuum. Since I’m moving out of this building into another duplex in south Portland I have fears of not being available to drain that area in the event of a flood. The problem has only gotten worse over the years unfortunately. I even installed a TC Hafford drain system, which helped but did not solve the problem on really bad storms. I suppose I could roll the dice a bit tho.

The other concern I have with the heat pumps is my building doesn’t have the greatest layout for it I think.

I do love the idea of them though and my girlfriends family uses them in their three unit and absolutely love it. The heat pump definitely wouldn’t flood haha

@Eddie Gonnella

Thanks Eddie! I really appreciate your perspective on this. Great to have a fellow Mainers take on the situation. I feel the same way about Portland in general.

You’ve definitely eased my mind about going with the gas boiler upgrade. $10k was about the quote I got for the wall unit. It would have to be wall hung due to the wet basement issues.

Do you have any thoughts on the value of spray foam in the basement when running natural gas in the building?

Thanks again Eddie!

@Nick Gann

Thanks Nick! That is very true, anything is for sale for the right price hahah. If someone came by tomorrow and offered me $500k I’d have to take it.

@Tim Jacob

Thanks for the tips Tim!

Currently I do have washer and dryer in both units, electric as well. This definitely helps me obtain the higher rents I’m pulling in.

In regards to electric baseboard, I have had bad experience with them in my market and have been steered away from them by most heating professionals. Maine just gets tooo cold.

Currently I am on oil heat for the entire building and it costs me $2,500 annually . Which makes me sick lol.

If I switch to the high efficiency gas boiler system it would estimated be at $1000 annually. The system however will cost about $10k to install. It pays for itself in 5 years or so but if I’m gonna sell I worry about not recapturing that investment on the other end. Then again, gas is highly desired in my local market so I believe it may increase the sale price enough to not be a waste.

@Zachary Beach

Thanks Zachary! I appreciate your take on this, definitely gives me a lot to think about in terms of timing on this as not to loss that tax free benefit

@Brian Roberts

Thanks Brian! I really appreciate you breaking that down for me.

I like the idea of putting that money down on a larger $750k unit, but the struggle in finding is my local market has gone quite mad and $750 can basically get you a 4-unit-6-unit at best and they are few and far between. For example 3-units are going for $550-$640 incomparable locations.

I think I need to bite the bullet and start exploring outside my local market

@Dan @Dan Chevreux

Thanks Dan! The expenses are actually a little less at $1556 + $500 total

I like your suggestion to set aside funds from rent specifically for the major cap ex that will be coming up. I think it will help to delegate specific funds for this purpose.

In regards to returns in my local market, I think I just got very lucky with this property. It’s kinda made me delusional on what to expect on my next I think lol

@Cory Binsfield

Wow thank you so much Cory! That information and your perspective is very helpful.

I love the goal of 10 house hacks in 10 years

I really appreciate your sharing that few calculated, when I get back to my computer I’m going to dive in, it sounds great

Also, your point about the 1031 makes me feel better about holding. I had overlooked that option as I’ve yet to have the opportunity to do so. I think my biggest worry was losing out on that tax break, so that solves the issue there.

Thanks again Cory!

@Michael Wagner

Thank you very much Michael!

@Joshua Watts

Wow that is awesome, Congrats on retiring at 41!

Thanks again for your advice and sharing your experience Joshua