All Forum Posts by: Pete Schwan

Convert from SF to 3 Condos. This single family property has tremendous resale potential due to proximity of the Red Line and UMass. This project would likely be either a) Renovation and addition or b) Tear down and rebuild. Located in a 3-Family residential subdistrict therefore up to 3 units is allowed. Also, in a restricted parking zone so off-street parking is not required. Would likely need to go through Board of Appeals for change of occupancy. Realistic resale price/sqft is $450. 2bed condos in this neighborhood are selling at $425K.

This single family property has been in the same family since 1978 and is exclusively offered by Bode Well, Inc, off-market. Home has great bones but is in need of cosmetic updates. Tremendous potential to flip or hold due to proximity of the Red Line and UMass.

Hi BP: I'm looking to partner with a real estate investor who is Upstate NY, specifically near the Finger Lakes. I've uncovered a property that has tremendous upside. It needs to be acquired and rehabbed and then we'll sell it with a huge profit margin. I have some funds but a partner well capitalized would be super helpful. If you or someone you know is interested, please let me know ASAP. Thank you and I look forward to hearing from you. ~ Pete

You can go solar for $0 upfront if you choose the PPA from ______. They will maintain the panels for you at no cost. You can keep the utility bill in your name and advertise "electricity included" and charge $100 more a month in rent. When you have overage in production on your rental property you can transfer that overage to your new house and apply it to your utility bill at the new house (both bills have to be in your name to transfer kWh). Do you follow me? Let me know if you have any questions.

Hi BP,

I've got a commercial property that is vacant. There is no mortgage on the property. I'm looking to do a cash-out refi of $230K. The building is worth $300k easily. IS there any commercial lender that will touch this?

Thanks for your help, y'all!

Pete

Hi Jonathan, Welcome to BP. Assuming you own one property already...see if you can do a cash out refi and use that money for a down payment on another solid investment. If you can find a 2-3 family thats awesome because you could still do an owner occupied conventional loan, keeping your down payment to a minimum. The you could rent out both units and cover your overhead. Maybe you could put solar panels on the house for free to further reduce your operating costs. Hope this helps. ~Pete

Dear Russell, Thank you for your reply. I'd be happy to show you some comps of very similar houses, typical 4beds, 2.5baths 2500 sqft, that you would find in any suburban neighborhood, a few with solar panels and some without. You'll see that the ones with panels are selling at a higher price. Would you please show me some homes, comps from D.C. that have solar and those that don't? "Value" is really only determined by what any given person would pay for any given object or service. How could you ever say definitively that, for example, a younger more progressive and environmentally responsible couple searching for their first home would not be excited about buying an energy efficient house and there fore pay more for one? The advice you "always" give your clients, that solar panels decrease home value could be misleading in some cases. Do you lobby for the oil and gas companies on The Hill?

Dear Michael, Welcome to BiggerPockets and I too wish to build a portfolio of sustainable, net-zero income property. Don't be dissuaded by Russel's comment, as that is not the case in reality. Any time I see someone say "I always..." it makes me wonder about their judgement. However, I agree that in some, more affluent neighborhoods, like those in the Beltway, solar may be considered ugly and negatively impact property resale value. But I wonder which will be worse for property values, having solar panels or having the house under water when the sea levels rise.

Yet, the cost of electricity continues to rise and for most Americans, saving 30% on their monthly electric bill makes a difference. If you own income property I'm hard pressed to figure out why not go solar/sustainable. Here is an example: An average 2 family house in a normal neighborhood, that gets average sun has one common electric meter on site. This meter is in the landlord's name. The landlord's uses the same utility company at his personal residence. The landlord gets solar panels installed AT NO COST and hooked up to his common meter, which has a very nominal bill. He is now buying clean energy at a lower, fixed rate. Furthermore, all the excess power put back on to the grid is accumulated in the landlord's utility account. Every month he is able to transfer all the excess credits to his private residence nearly eliminating is own monthly electric bill. 

There is one catch...In order to go solar the landlord is required have WiFi at the rental property, so he sets it up determining that it will more than pay for it self. He is now able to market his property as an energy efficient rental with free WiFi on site (which he adds an additional $50/month for the rent). Which rental property do you think a millennial would rather rent; the environmentally friendly landlord with free WiFi, or the other one?

And when you finally sell your cash flowing real estate to a younger person who is more concerned with the planet you'll have a competitive edge in the market place. Here in the Boston Market, perhaps because of cultural differences, homes that are energy efficient, including solar, are selling for about $7000 more, all things being equal. I guess people like lower bills, fixed rates, and helping the planet up here.

Please forge ahead with your goal and believe in a better, brighter future.

~Pete

If the common area is on a separate meter and your house is a good candidate for solar panels, you could get them installed on your roof for free. Then the panels would cover the cost of the electricity and the surplus would be put back onto the grid. Let me know if you wanna talk about it in more detail. Also, solar will increase your property value o the resale.

This seasoned development team raises the bar for sustainable, responsible, residential development in South Boston. Quality and design are head and shoulders above local home-building convention. This latest conversion is situated in one of the most coveted Eastside neighborhoods, blocks to the best City Point Beaches, South Boston Yacht Club & Farragut Park Greenway. Expansive, open kitchen/living environment leads to extended rear deck overlooking massive rear yard. Unique 5 1/2" red oak hardwood flrs, exceptionally tall ceilings throughout. 42" kitchen cabinets are fitting to showcase Bertazzoni & Bosch appliances. Over-sized center island w/breakfast bar and double pantry closet offer enhanced utility. Both BRs/baths are large and master bed features bay windows, full walk-in closet w/elegant marble & glass bath. Deeded storage room in the basement. Opportunity for customizations include: floor finish/stain, countertop stone, lighting fixtures and paint choices.