First Home Issues and Strategy

[Frank Hotard]

Good Morning BP,

I bought my first house last year in Suffolk, Virginia just to get started in the real estate game. It is a remodeled 2/br 1.5 bath, 832 sq. ft.. My intent was to move within a year and rent it out, but we have been having unforeseen expensive issues that I am looking to get advice on.
1) HVAC: Our biggest issue. It is a Daikin mini-split. The cold air often runs out in the summer and the heat doesn't turn on in the winter. We've had a couple HVAC techs recharge the refrigerant and one recommended replacing the entire system. I don't have the capital to replace the HVAC at this time or the credit to finance it. Is replacing the HVAC with a completely different unit the best solution? Are all Daikin units prone to failure?
2) Electrical: Because we have no heat, we've been using two space heaters. One of them caused an electrical fire and burned out an outlet. FD came and red tagged the outlet. I have an electrician coming tomorrow morning to troubleshoot that. My gut feeling and research is telling me the sellers did a poor job on the breaker panel and wiring. What should I expect the cost to be?  Is this a common issue in remodeled homes?

3) Washer/Dryer/Water Heater Tank: The house has a space tucked away for a washer/dryer, vents and all. The problem is, there's the giant water heater tank in the same corner that takes up quite literally a 1/2in too much space. We tried having the smallest washer/dryer installed, but the install team couldn't make it work. So we have been going to a local laundromat for laundry. I have been researching tankless heaters, and I'm leaning towards an electric tankless heater to save space and finally be able to wash laundry in-house. Are tankless heaters a viable option?

So, in essence I would be listing a house for rent with no HVAC, shoddy electrical, and no washer/dryer at this point. The remodelers we purchase the home from did an incomplete and unprofessional job. If were a tenant, I would never want to live here. In hindsight I probably should have gotten an additional HVAC-specific inspection and tested the measurements for the actual washer/dryer space. I will do this in the future.

Would you sell this home as-is and likely take a small loss, or hold it for the long run and upgrade the home as needed until it was rentable? Purchase price was $179,000 and mortgage is $1,420 for context. TIA

[Michael K Gallagher]

@Frank Hotard oh man the joys of home ownership!  while I totally understand the frustration especially purchasing what was supposed to be a new and ready to go asset, but these things are pretty common so don't feel to discouraged.  i also had HVAC mystery issues in my first duplex when we house hacked it.

Regarding the Daikin Mini Split - I have one in the 3rd story of my current home and it seems to work great for us.  i do think its about time to have a tech come out and go through it and make sure it works well but in general I'm very happy with it.  i do not however use it for heat mine is an AC only unit I believe not a heat pump unit.

If you're whole unit is relying on one mini split for ac and heat that surprises me just given if you shut a bedroom door you'd not have heat from the split that I assume is in the living room.  Generally there are multiple units for each "zone" if you will when I've seen them installed.

Regarding your problem at hand, I personally would simply adjust your plan to move and make your initial plan to get the current issues resolved, while costly now, in the long run holding onto the unit will likely pay off.  For the HVAC, I'd just question if that's the correct and best way to go about it, but I'm not an expert, but certianly you won't get interest listing a unit for rent or sale without HVAC. I'd personally say pulling your water heater out and replacing with a wall mount on demand one, would be worth the cost to have in unit washer dryer if you are staying there or renting it, it would be worth it.

its always worth doing the big stuff well and correct even if you are cleaning up after someone, the long term hold always prevails, its just a little frustrating front sometimes, but hang in there!