All Forum Posts by: Garrett Dilley

Thank you Brittany (and Alan for expanding on it)!  I have always been a fan of heat pump technology for my own personal use albeit I don't know what I don't know on it.  Alan - I guess in my limited prior research on the subject I've come across the same thing - ie. less adoption and thus experience as of yet for residential use (contractors and municipalities).  I guess we are in that early adoption phase for residential?  I will need to balance my own desire for the technology with that practical side of the law of unintended consequences and putting a tenant through a significant impact to their living space and hiccups that could arise in what seems to still be a steep learning/adoption curve for the energy providers/contractors/local municipalities/and me :)

Are there examples of people here in Denver that have made the switch to a heat pump for heating and cooling and if so how have they heated on the colder days such like the recent low single digit to -20 F span we've been through?  Also, curious of info on anyone who has implemented in 100 year old homes and what it entailed (how many systems required a complete re-do and at what expense)?

Thanks again for the help on this.  Very much appreciated.

 Thanks Alan.  I had to look up the new Manual J, S & D standards - I had not heard that.  Thank for directing my attention to it.  Are those in place in CA?  Do you happen to know if they are in CO?  Asking to gauge the search for contractors with knowledge of it.

 Thank you Chris!  I agree - multiple proposals needed.

@Jeff White  Thank you for this.  Yes, the furnace is gas forced-air so ducts and vents are already in place - sorry I was not more clear on that.  It does lend itself to a central air system.  I like what you said about a premium area - It seems to me that tenants renting in this area expect AC - for those two months/few days in the Colorado summer that are in the high 90's.

I am surprised to learn that mini-split systems are more expensive. But I don't know much about them.  I was thinking in a simplistic way a single unit could be installed on the main floor which is where the cooling is needed, but again I may not be appreciating all the ins and outs of a mini-split.  The house is a single story bungalow 950 sq ft on main floor.  Basement is similar in size but stays cool on its own.

I will DM you.

Since it was -10 here yesterday I figured what better time to ask a question of you all regarding AC :).  consider it planning ahead.

We have a SFH in the Highlands neighborhood (what has become a more upscale area) in Denver which currently has a swamp cooler. The swamp cooler is on its last legs and while replacing it is an option, it seems many of the similar SFH's rentals and certainly all the newer apartments in the area now have moved to AC.

My question is - What options do you recommend for the most cost effective install of AC in your rental houses?  Have you gone with Central Air?  I have heard of mini-splits but have no experience?  Are there other options?  Or have you proposed to tenants for them to purchase floor standing units, or possibly provided them yourself  - And if so how have you set such up so they can be vented securely? (some tenants have understandable concerns with having a vent in a window).

I have received a ball park estimate of ~$15 - $17K for Central AC, New Furnace, and New Electric Panel.

We do plan to have a new electric panel installed for other reasons regardless of whether we upgrade to AC or not.  The furnace is 20yrs old but operating fine (with exception that its a little oversized for the house and at least according to one HVAC tech apparently the motor runs on the higher side of normal amps range).  I'd rather leave not replace an operational furnace simply due to age.

Thank you in advance for any and all suggestions/thoughts/considerations/conversations on this topic.  

Garrett

Hi All.  

Does anyone have an electrician in Denver they would recommend?

Tenant just informed me the outlets in one part of kitchen have stopped working in a rental in Denver. Unfortunately, my electrician recently retired and I have not found a replacement.

Tenant just informed me the outlets in one part of kitchen have stopped working in a rental in Denver.  Unfortunately, my electrician recently retired and I have not found a replacement.

Does anyone  have an electrician in Denver they would recommend?

@Jennifer Shen As a means to get your first step into owning rental properties a turnkey company can certainly be a good consideration.   I too asked the same question at one point in my journey.  Time being of a premium, turnkey seems attractive.  Ultimately, for me to get started I chose a path similar to what @Theresa Harris has suggested - properties that needed a little work but essentially that which I could have completed by a handyman in a few days.   From listening to those that I know who have tried the turnkey company route the key take away is trust but verify.  Its not to say that the turnkey company is not being truthful but it is up to the investor to run their own numbers and do all the same research and due diligence as you would if you were managing all the steps.  A couple areas that have stuck out in the comments of those who have turnkeyed; hire your own inspector and be very diligent in reviewing the specific tenant placement policies that the company uses.  Learn what good looks like for tenant placement and get comfortable with the policies the company will be employing on your behalf.

@Robert Flores Some great advice by all here.  Hopefully, accounting for all of it will put you in a better position to assess the risk and reward.  I would reiterate what @Ahmad H. has said about scale- that is certainly an important factor.  Yes, you need to start somewhere -but start there if you have the plan to scale there over time.

A couple things I would add are; go on to the city permit web page to do a search for major systems and if and when they may have been replaced.  The more the better.  I found early on - if I did this prior to the inspection it helped me to begin to put together an assessment of what my upfront and long term estimated costs could be.  Once you have your inspection report you will be spending some time tracking down cost estimates and assessments on some of the problem areas, so if you can go into the inspection having already started this by way of your permit review it can add to your confidence.

There are good estimates available on BP of typical lifespan of major systems so if any of the majors are very close to end of estimated life I like to pull these costs into my numbers as an upfront. Others which still have life but will need to be replaced in a few years can be factored into your monthly maintenance estimate calculation. I've seen properties where 8% is fine, and other where 10% was not enough because of the number of systems which would need replaced in the next 5 years. You may find that which such an analysis your 10.5% COC is no longer 10.5%. A COC lower than 10.5% is not a reason to scrap the deal per se. But it gives you the confidence that you know what the numbers will most likely be and with accounting for the other aspects of the deal you can make a confident decision to go forward or not.

I hope that helps!  Good luck and keep investing!!

Hi Fellow BP Members!  I am a newer real estate investor with a few buy and hold rental properties. I am in the process of exploring the raw land/developable land buy and sell side of things.

I am wondering if anyone would have a referral for a real estate lawyer who is fluent in seller financing/ The SAFE Act, and Dodd Frank regulations?

I would be greatly indebted for any help!

Thanks,

Garrett