A landlord in Phoenix showed me why my rental analysis was wrong

I was looking at a duplex near 7th Street. Running comps like always. This older guy walks over, says he owns three doors on the same block. I tell him my cap rate estimate. He laughs. Tells me I forgot to add the HERS rating discount on insurance. Said he saves $180 a year per unit because of good insulation. I never factored that in. Anyone else run into offbeat expenses or savings that don't show up in the standard calculators?

3 comments

3 Comments

taylorellis24d agoMost Upvoted

HERS rating discounts are one of those things nobody mentions until you're already deep into a deal. I started asking about insulation and HVAC age specifically after missing out on a similar savings with an old property. Also found out some local utilities have rebates for high efficiency units that cut my operating costs by like $50 a month. The real kicker was learning that certain neighborhoods have lower insurance rates based on fire station proximity, never woulda guessed that one. Good on you for catching it early, it's wild how these small line items add up.

jenny_hall23d ago

Ha! The real savings came from switching to LED bulbs. Nobody talks about that.

riley4323d ago

I read somewhere a HERS 50 can save up to 20% on utility bills.