All Forum Posts by: Steve K.

That said, I agree with the others that the LLC name isn’t really something to spend too much time on. If you like the name go for it. A lot of folks start a new LLC for each property and just use the property address for the name, such as 142 Main LLC

If you name your LLC after yourself it kind of defeats the purpose of having an LLC (separating your personal finances from those of the business). It may even make it easier for someone trying to sue you to “pierce the veil” and go after your personal finances if the company is named after you. Also IMO any business should be scalable and setup so you can eventually step away and let it run itself without your involvement, so an eponymous name is a poor choice in that regard because the name implies the company will never grow bigger than you.

What’s wrong with 100 year old houses? As a carpenter I can tell you that newer houses aren’t always better. A house that has survived 100 years of neglect has probably got good bones, while modern construction is often all about slapping stuff together as quickly and cheaply as possible in order to maximize profit for the developer. As one extreme example of newer homes not being better, in Connecticut there are 15,000 houses less than 10 years old that were recently condemned because the builders used bad concrete on the foundations. Many brand new houses I see being built in Colorado are built so poorly I’d much rather own a 100 year old brick house instead. I’ve seen brand new patios slope back towards the house, joist hangers attached with deck screws instead of nails, brand new roofs that leak, etc. there are a ton of hack builders out there creating problems for whoever buys the houses they build that’s why it’s recommended to hire an independent 3rd party home inspector even for new construction. I love old houses with big moldings, cool original details and some character. Cookie cutter subdivisions and contemporary designs aren’t my thing. There were some periods of really bad construction over the years and some questionable materials used, just learn to avoid that and do due diligence on any home new or old, at least on the old ones it’s easy to see if the foundation is going to sink or not, if it was gonna sink it would have started by now. I feel like some of the new materials being used today like MDF which is basically glued together sawdust will be looked back on in the future like what were they thinking to use that stuff. Even the new automation and internet of things houses that are controlled by apps, I don’t want to use my phone to adjust my thermostat. I’d rather put another log in the wood stove. I’d much rather have a 100 year old brick building with good bones (and updated electrical, appliances and plumbing) that was built by true craftsmen than a new stick framed house covered in glued together sawdust built with poor workmanship and controlled by smart phones but maybe that’s just me.

Mavi Unlimited in Lakewood is a great local PM, they manage a few properties for me and have done a stellar job. The owner Mike Hoover is a great guy and his whole team is excellent. I’ve also heard good things about Grace Property Management (and I think the owner is on here), but I haven’t used them personally. A competent local PM should be able to get things back on track for you. There are some good management companies in Denver, but there are a few crooks here too. Vet any potential manager thoroughly and carefully. I interviewed about a dozen companies before I found Mavi which was the best fit for me. Denver is currently a hot sellers market so you might also consider selling.  Condolences for your loss. 

Have you seen the short video about fracking in Erie called Fracktured Erie? Link to it (and lots of other good info) in this article, sorry couldn’t find a link to the actual video: https://www.coloradoindependent.com/165168/fractured-boulder-fracking-moratorium-regulations whether or not you believe fracking wells emit carcinogenics or contaminate ground water, these wells are definitely not good to have nearby imo. Would you want your neighbor building a 30 foot tall fence, making loud noises all the time and pumping a bunch of chemicals into the ground causing weird smells? Having a well within a few hundred feet of your home (I believe the setback from residential areas is 350 feet) would certainly limit the number of people willing to buy that property (it’s making you think twice, the next guy will have the same reservations) and could negatively effect resale value. Most Erie real estate is appreciating because it’s one of the last affordable towns in the area, but  not houses unlucky enough to be in close proximity to fracking wells. Colliers Hill and Vista Ridge have been written about a lot in particular and definitely don’t benefit from articles like this one: https://www.thedenverchannel.com/news/local-news/neighbors-are-fed-up-with-fracking-smells-noises-in-erie-subdivision. If I were you I’d make sure any home you buy is as far away as possible from capped, current or future wells. Boulder county has had far less fracking than Weld county historically (Erie spans both counties), so you might look as far into Boulder County as possible but the future is uncertain because the moratorium was recently lifted in Boulder County. 2 people were killed last year in nearby Firestone when a new house exploded because it was built close to an improperly capped flow line, and these flow lines are not mapped, so it’s definitely an issue to be concerned with. http://www.timescall.com/carbon-valley-news/ci_30959619/firestone-explosion-started-by-gas-from-cut-flow

DIsclosure: I work for a solar company (if anyone reading this hasn’t read all the other solar threads on here yet). Also just for the record owning/financing a solar system is superior to leasing in my book partly because returns are better and for other reasons as well, but in the case of investment property when the owner can’t claim the tax credit, then in that case leasing is currently the best option for going solar. For a primary residence I always recommend cash or financing, not leasing. 

@Nathan Gesner the leasing companies have driven equipment and installation costs so low that the systems are relatively cheap for them to install, and they sell the tax credit to entities looking for a tax haven, so that helps them recoup most of their initial investment and selling energy is gravy on top. You are not wrong that the margins are thin, if you follow any publicly traded solar leasing company you can see why they call it the “solar coaster”. I agree that 20 years is a long time to be locked into an agreement but the savings aren’t necessarily small, upwards of $50k for just an average resi system (in some areas depending on net metering, price per kWh, etc.) and much more than $50k for bigger systems. Keep in mind that the initial investment is often $0 when leasing so returns are infinite, it’s akin to getting a property with 100% financing and negligible mortgage payments.

@Chris Seveney I normally would agree with you regarding ownership/financing being a better option than leasing. Ownership is typically better in almost every way. However in the case of investment property, the owner may not be able to take advantage of the tax credit, in which case leasing is by default the best option to go solar because the leasing company can claim the tax credit and pass those savings on to the owner. 

The issue is more likely to be creating another unit on your property. Start by calling your zoning/building department and ask if adding an ADU is allowed. Don't give hem your name if you want to stay off their radar. If your property is zoned to allow an ADU (and this is a big IF), then ask about regulations for short term rentals. Where I am, short term rentals in a spare room in your house require the owner getting a $25 business license, 7.5% sales tax, and the room can only be rented for 120 days a year or less. Failure to comply can result in a $12,000 fine (and they do enforce the rules, which are easy to enforce seeing as short term rentals are almost always advertised on a handful of websites that anyone can see including code enforcement agents). Definitely check out your local rules and regulations, and if there aren't any yet in your town regarding short term rentals, research whether or not there are any in the works as a lot of towns are adopting similar rules to my area. It would be a bummer to make that initial investment and then have new rules come out that negatively effect your situation, so it's almost better if your town already has rules in place, (at least that way you know what you're dealing with and can make a business plan based on the rules). And yes you should have the proper insurance as well. If you end up doing the work without a permit and get caught you could face hefty fines and have to undo all the work, or if you don't get caught it could cause issues when you sell.

@Nathan Gesner average “break even” for solar where OP lives in DC is 5 years on a cash purchase in 2018: https://solarpowerrocks.com/washington-dc/ but payback period is irrelevant to the OP since there is no initial investment to be recouped on OP’s end, as this would be a leased system (a third party owns and operates the system, the upfront cost to OP would be $0). The third party leasing companies are able to leverage economies of scale/ bulk buying power on equipment / vertical integration to drive costs down such that they can install solar cheaply enough that they will be making money on the system very quickly if not immediately (by selling the tax credits to banks/investors/tax equity funds and by selling energy back to the grid at a premium) . They then pass the savings on to the owner of the roof that they're “renting”.