All Forum Posts by: James Klafehn

If you want to own them you can buy out the lease. But THAT doesnt make financial sense. 

You don't want to own them. They lose efficiency over the years and with the way technology advances, you will be able to buy some new miracle panel when the lease is up. 

There is a buy out at the end, just like a leased vehicle but I have heard of companies leaving them there because at that point they arent worth the effort to send someone out and remove them.

Id stick with the lease and be happy. If you dont want them after the lease is over, have the company remove them then install the new uber efficient panels

I havent had any luck but its party because of my market. There is a lot of money in my area and investors have flocked to my area because of the high rents.

It all depends on your market and how desperate the seller is to sell.

Never heard of them. Buildium is the best and most affordable that I have ever used. I also really like the features they offer.

Oh also, I live in a really "green" area and having solar hot water and solar PV panels helps my street cred. I think I get better tenants too because they care about what I am doing and appreciate that I am one of the only landlords doing it.

Why dont you want the solar lease? I have a solar lease on one of my rental properties and I plan on getting solar systems for 2 other properties. Every time I have analyzed a solar lease it has been at or below my average electric bill. To me it was a no brainer, and my electric rates are actually low ($.11/kwh). I could pay my electricity provider $100 for coal fired power or I could pay $90-$110 for renewable energy. Hell, even if I had to pay double, Id still do it. But I believe that using renewable energy is the right thing to do, even if its not profitable right away. I like knowing I am doing my part to save the planet.

Congrats on your decision. Part of starting out is simply making a decision and choosing a path.

Assessed values are usually low, at least in my area. But every municipality can be different. Sometimes they may have higher assessments but only tax you on 80% of it. In my area they tax me on 100% but the assessments are lower than the actual value of the house. Part of the reason the assessments are low are because my area has appreciated in value so much and so quick. My point is that you need to ask some other local investors and get more info about your area.

Have you heard of Cap Rate? If so do you know what the cap rate is in your area? Simplified a cap rate is how much return you expect from your investment. Every area is different. In my area properties are expensive but rents are high. Cap rates of 10-15% were normal but they have dropped to around 8% now because so many investors have come to town. Find out the cap rate for your area and that will help you analyze a property.

Of course you need to meet their qualifications but they are low. They are fairly easy loans to get. Unfortunately you will need to pay PMI which adds to your payment. But when you are starting out and dont have a lot of money to put down its a great way to go. I used FHA for my first house which was a 3 unit. Then, after a couple years, I refinanced it and used another FHA loan on my second property. After that I didnt need to use the FHA program anymore. I couldnt have gotten started without it.

I am a buy and hold guy but I am a product of my environment. Each and every investor needs to analyze their market and figure out what works best for their market. In my area $150,000 gets you a beat up old house built in 1890 that needs a ton of work. Its a wealthy area and there arent many foreclosures. But on the other hand, rents are extremely high. So for me it makes sense to buy a multifamily and rent it out. I have found that 4 units are best because you can still get a residential mortgage on them. They are also easier to get a loan.

Every area is different. Look at your area and see what the best path is.

I use Buildium for my business and they have an integrated tenant screening system. I dont remember exactly but I think they charge around $13 per applicant and I charge a $20 application fee per person. I really like Buildium and if your not yet using property management software Id highly recommend you check out Buildium