I wrote a Blog a few years ago entitled:
“The Stars have aligned for Solar Panels on Apartment Buildings.” At that time I was excited about the
development of Virtual Net Metering: a method in which
Recently I completed the National
Association of Realtors GREEN designation course, I highly recommend this class.
At any rate, I became aware of two more profound positives for making apartment
buildings energy efficient. Fannie Mae has come out with their Green loan program, which among many great features has the
ability to finance future GREEN improvements in a purchase or refinance loan,
plus discounted preferential pricing!
The second light bulb was a graph demonstrating
how solar and renewable power are now less expensive in many cities than conventional
electricity rates.
How does this all work together to
create $100,000?
Example: You own or purchase a 10 unit
apartment building. You spend $50,000 on retrofits and solar panels. Your additional loan
payment on $50,000 @4% 30 years = $238 per month. You change your leases to
collect the electric bill form your tenants: 10 units x $60 electric bill per
month x 12 months = $7,200 increase in annual rental income, less $2,856 loan
pmt. = $4,344 EXTRA annual income. You also reduced your water heating,
lighting, and interest rate expenses roughly $4,000 per year.
Additional net income of $8,344 per year
at a 5 cap rate = $166,000 equity.
THANK YOU FANNIE MAE!
