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All Forum Posts by: Taylor Stamm

Taylor Stamm has started 6 posts and replied 24 times.

Post: New Investor in Wichita, KS

Taylor StammPosted
  • Rental Property Investor
  • Melbourne, FL
  • Posts 25
  • Votes 25

@Kyle Zdrojewski

Welcome to BP Kyle! I wish you the best of luck in your real estate investing endeavors. I also have a STEM background, so it always makes me happy to see other people with STEM backgrounds pursuing REI. I hope this community can help you reach your wealth goals.

Post: Pooling Money from Roth IRA & 401k for First Home

Taylor StammPosted
  • Rental Property Investor
  • Melbourne, FL
  • Posts 25
  • Votes 25

Hello BP, I will be finishing graduate school in about a year and am starting to look at buying my first home. I plan on house hacking a small multifamily home. I have a good chunk of money saved up, and want to know if I can supplement this saved up money with the money from my Roth IRA and 401k (from a company I interned at one summer but will no longer be working for.) as a down payment for this small multifamily home. I have about $2000 combined in the Roth IRA and 401k that I want to utilize.

If I can use this “retirement money” to supplement the down payment, are there any taxes, fees, or legalities that I should be aware of, and can I even do this in general?

Post: Using Rooftop Solar Panel Systems to Increase Cash Flow

Taylor StammPosted
  • Rental Property Investor
  • Melbourne, FL
  • Posts 25
  • Votes 25
Originally posted by @Jennifer T.:

I've had solar panels on my personal home for 6 years.  Just a warning that there seems to be an assumption going on that electricity bills are zero or a small amount, once a property has solar panels.  I suppose that could depend on how many someone puts on.  But we absolutely have an electricity bill and it still isn't anything to sneeze at.  The panels only save us about half our electric cost.  I'm sure battery backups would help with that at night.  But they were crazy expensive and nowhere near worth it, when we looked at the cost.  Albeit, that was 6 years ago.

And we don't have power when the electricity is down.  Of course, we're still tied to the grid.  And, for worker safety (at least that's what I was told), they can't allow electricity to stay running, even for people who are producing it themselves with panels.

Of course, and that is why I would have to design the solar panel system to produce enough energy and include that in my numbers for the idea.

It is understandable that home-solar could cause serious dangers with line workers during times of fixing a downed power grid, and that is a common issue being faced by the modern-day distributed generation power grid (known as unintentional islanding). Technology is currently in development for protecting line workers from such dangers, and also I believe that home-solar could potentially be used during these situations if the system is properly isolated from the grid (but if doing so, please check first with your local utility company).

Post: Using Rooftop Solar Panel Systems to Increase Cash Flow

Taylor StammPosted
  • Rental Property Investor
  • Melbourne, FL
  • Posts 25
  • Votes 25
Originally posted by @Steve K.:

@Taylor Stamm here's a good overview of the state of the solar industry in Florida: https://www.solarpowerrocks.com

Counter-intuitively, the "Sunshine State" has not been kind to solar historically, but that is has changed in the past few years and the solar market is rapidly developing there now. The state as a whole was late to the game in establishing net metering policies and statewide interconnection agreements with a few exceptions in certain areas. However net metering is now available in most of the state so things are looking up for solar in Florida. Electricity prices are on the high side there too so the economics are good in certain scenarios. The best way to proceed would be to get a quote for your property(s) to see how the numbers work for you specifically, as mentioned above each property will be different. 

Absolutely, I agree. Fortunately, Florida power companies such as FPL and Duke Energy (who I used to work for) are becoming more accommodating for home-solar. Also, Florida passed a law that requires net metering customers to be compensated at the retail power rate.

Post: Using Rooftop Solar Panel Systems to Increase Cash Flow

Taylor StammPosted
  • Rental Property Investor
  • Melbourne, FL
  • Posts 25
  • Votes 25
Originally posted by @Thomas J. Clifford:

Great topic - I was reading that installing panels on the roof also reduces the amount of heat that the property absorbs through direct sunlight. This could be a great thing down in a coastal spot like Melbourne! Lower costs on electric, cooling, and offering a greener option all sound like great things to me!

That being said, I get the impression that this is one of those things that as an investor, the squeeze might not yield that much juice (electricity pun?) for you as the landlord...Maybe a nice benefit that you can use to raise the rent, but if a renter has a choice between two units that are equal in every way, but one is $150 more a month because of the solar panels, I bet they'll go for the less expensive property...They'll think they're comparing apples to apples, when in fact you're offering apple plus a little extra.....I know that in theory they'll save more on utilities, but it's a variable saving and it might not translate well when they are looking at rent only.

This also might have to raise your percentage when considering cap ex when trying to determine if its a good deal or not. Just another point to consider.

Still, I LOVE the idea, but I am a little bit of a hippie when it comes to the environment. Maybe try it on your primary residence, see what kind of savings you experience, and decide from there.

T.

That makes sense. I understand that this is something that I definitely need to carefully run my numbers on and talk to people who have had success with this. I will continue my research on this.

Post: Using Rooftop Solar Panel Systems to Increase Cash Flow

Taylor StammPosted
  • Rental Property Investor
  • Melbourne, FL
  • Posts 25
  • Votes 25

@Davido Davido

Great info Davido, thank you! This makes me feel much better about the idea.

Post: Using Rooftop Solar Panel Systems to Increase Cash Flow

Taylor StammPosted
  • Rental Property Investor
  • Melbourne, FL
  • Posts 25
  • Votes 25
Originally posted by @Davido Davido:

@Taylor Stamm, and @Anthony Dooley,    Taylor if you install Solar on a rental, the solar install should become another revenue source for you.  I suggest that you install a WiFi enabled electric meter and immediately start billing the renter yourself for the electricity they use -plus a small surcharge to cover your solar system maintenance and to cover your time for billing.  

In essence, installing a solar system gives you the opportunity to be the electric provider for your renter, and the solar system should become an additional source of revenue for you.  The extra revenue is negligible at first as the electricity used by the tenants generally covers little more than the payments due on the Solar PV System.   However, after the system is paid off, typically in 5 to 10 years, the revenue from your tenants becomes significant.  After pay off, look for an extra $200/mo on each rental, plus you can use the existence of your onsite solar electrical production as a selling point, plus you get immediate extra depreciation for the cost of the system, plus you can count about a third to half the cost of installing solar as increased value (equity) in the building.   

Interesting, thank you for the information! If I had an appraisal done on a house with solar panels, would they take those into account for determining the value of the home?

Post: Using Rooftop Solar Panel Systems to Increase Cash Flow

Taylor StammPosted
  • Rental Property Investor
  • Melbourne, FL
  • Posts 25
  • Votes 25

@Joshua Johnson

Agreed!

Post: Using Rooftop Solar Panel Systems to Increase Cash Flow

Taylor StammPosted
  • Rental Property Investor
  • Melbourne, FL
  • Posts 25
  • Votes 25

@Anthony Dooley

I appreciate your opinion Anthony, I will definitely consider that.

The plan is essentially that the entire house’s energy would be completely supplied by solar energy for MOST of the time. Of course though, there are times when the sun does not shine and the home battery could run out stored energy, so the conventional utility plan is there for more of a backup so that the house is not blacked out at any given time. When the system realizes that the panels are not supplying energy and that the battery is low, the system would turn over to utilizing energy from the power grid.

In other words, the tenant would have an extremely low monthly conventional utility bill and even possibly not have to pay anything for that month’s conventional utility bill.

The rooftop solar energy bill would likely be implemented directly into the monthly rent price and would go directly into the rental agreement; therefore only having one utility bill (if conventional power is even used that month).

This would not be imposed on an existing tenant: this is a potential plan for the future when solar panels are cheaper and this is priced out to be financially feasible.

Being in Florida, another potential advantage of this is that the solar panels could still be used post-hurricane, when the conventional grid is blacked out, to continue supplying power to the house. I know of people in Florida who had their solar panels survive Hurricane Irma and could continue supplying energy to their homes after the storm.

Of course, home solar energy is a location game; so the average profitability and return of using solar panels drastically changes depending on the exact state/city/location they are being used at.

Post: Investor-Friendly RE Agent/Property Manager in Brevard County?

Taylor StammPosted
  • Rental Property Investor
  • Melbourne, FL
  • Posts 25
  • Votes 25

@Christian B. Thank you!