All Forum Posts by: Steve K.

Well you've got rafters, not trusses, and there isn't any visible mold from these photos. The decking looks a bit aged, you'll probably want to replace that with the roof. Doesn't look bad at all. I'd get a quote to replace roof and decking, plus soffit vents and ridge vents, and go from there.

@Heather Schmidtknecht I would recommend getting at least 3-4 quotes from different local companies as well as a few from some of the big national companies. If you're looking for an investment property you'll need to look into leasing or PPA options in order to capture the benefits of the tax credit as Andrew mentioned. The companies you get quotes from should be able to assist with ROI/payback analysis for your specific roof orientation, local incentives etc. As far as adding value to the property, the Appraisal Institute has determined that for every $1,000 in annual energy savings achieved from solar, the home value increases by $20,000 (for a purchased system, not a lease/PPA). So in a case where your electric bill was $100/month average, that equals $1,200/year saved which equals $24,000 added resale value to the home. Of course that number is just based on broad data from sales comps nationwide, so it will depend on the actual home buyers in your market whether or not they're willing to pay a premium for free electricity. In my experience 99.9% of home buyers prefer buying a home with no electric bill as opposed to an identical home with an electric bill, so I believe solar differentiates the home from close comps at the very least and increases salability. I've sold several homes with solar and in each case the buyers indicated the solar system was a value add for them personally, and the homes had multiple offers above asking price. Of course not all realtors are equally adept at framing solar in a positive light, and not all buyers are familiar with the benefits, so you'd want to make sure to work with a realtor who is familiar with how solar works and the benefits it provides. I've worked in the solar industry in many capacities both residential and commercial for about 15 years now and also have solar on my personal residence as well as investment properties, so if you have any questions on the quotes you're receiving or anything else solar-related please feel free to reach out.

@Alex Gordon not having adequate soffit vents and ridge vents will cause attic mold almost guaranteed whether the roof is leaking or not. Adding these vents in correct quantity and spacing as per current code requirement should solve the problem, so I wouldn’t be overly concerned about it. Consulting a mold remediation expert isn’t a bad idea but they may recommend expensive remediation that may not be necessary (but may also help you negotiate a lower price). I’d take a peak up there myself or look at the inspectors photos at least to see just how bad the mold situation is and talk to a few roofers and get some quotes on a new roof plus soffit and ridge vents. If the mold is really bad in there you may need to pull any affected insulation out, possibly replace some of the decking, maybe the trusses are even rotting, it’s hard to say without seeing it myself but the root cause is likely lack of ventilation. It wouldn’t be a deal breaker for me unless the mold situation was really bad as in spread throughout the insulation, the plywood and the trusses. If it’s just a small amount of mold I wouldn’t be worried. You might consider asking for a discount equal to the price of a new roof including soffit and ridge vents, depending on how negotiations are going outside of this issue and whether you think the seller will agree to that or not based on all the other details of the deal of course.

@Dave Foster thanks for your comments on the other similar post, and thanks in advance if you feel like contributing here!

Just read another post that got me thinking... didn’t want to hijack her post so starting a new one: We’re looking to sell a Quadplex later this year and expect to have some capital gains. We own another similar quad down the street, with seller financing in place which has a balloon payment coming due. We were thinking of using the proceeds from the sale to pay off the other building. Would we be able to 1031 profits from the sale into the other quad? We hold title with a promissory note held by the previous owner.

@Michael Zack Hearing the neighbors is just part of living in a building with other families. Most tenants understand that and are used to apartment living, but every now and then you'll get complaints. Sound proofing is super difficult and expensive, like borderline impossible in my experience, so probably not worth it. Just always disclose the fact that it's a shared building and you can hear the neighbors, set those expectations up front, screen well in order to get respectful tenants in there, avoid pets and small children, and you'll be fine. My cousin had a SFH in Quincy which he sold recently and made a killing on. Not sure on your exact neighborhood but it seems like everything in that area has great appreciation potential, you just have to look at it that way. I do agree with others here that your expenses are probably estimated a little low, as I'm assuming it's an older building and you'll have some pricey upkeep. It's an appreciation play, so it might be negative cash flow or break even type scenario for a while until you can raise rent. But if you hold on long enough there's a good chance appreciation will make it all worthwhile and your wife will be pleased that your starter home where you had to listen to the neighbors arguments and love making ended up paying for nearly half a semester of your kid's Harvard tuition lol.

@Julie Marquez I wouldn’t be able to explain this to prospective tenants while keeping a straight face. I would crack up. I’m imagining you delivering this message like El Risitas the Spanish giggling guy meme: “Hahahahahaha first we make you agree to a month to month lease at a low introductory rate hahahahaha, then we take a $400 “move in fee” up front plus a deposit hahahahahahaha... then, just when you get done moving all your crap in and putting utilities in your name, we jack up the rent ahahahahahaha, and when you get pissed and move out, WE KEEP YOUR $400 AHAHAHAHAHA!!!

@Nita Martin I agree with everything above: you definitely need to dial in your rehab estimate (and then double it for unexpected issues that are bound to crawl out from under the ancient floorboards). A potential concern that hasn’t been mentioned yet is that it is in a historic district. I’d look into what that means as far what hoops you’ll have to jump through to get approval, as you may be looking at considerable additional expense because the hysterical society may force you into a major restoration instead of just doing what makes the most sense for your business. These areas can be severely limiting in terms of changing anything or trying to adhere to a reasonable budget.

How many tenants does it take to change a light bulb? Three: one to set the ladder up, one to hold the ladder and the other one to burn the house down.

Of course common courtesy requires 24 hours notice, or in this case a predetermined and agreed upon laundry schedule, apparently. But my understanding is that in CO a landlord is technically not required to provide notice before entry. 

Colorado Rental Laws:

• Required Notice before Entry: No Statute
• Entry Allowed with Notice for Maintenance and Repairs (non-emergency): No Statute
• Emergency Entry Allowed without Notice: No Statute, but reasonable entry during an emergency is always allowed.
• Entry Allowed During Tenant’s Extended Absence: No Statute