Choosing the right heating system

[Matt Cook]

Hello BP members,

I am a first time investor getting ready to do a rehab on an REOduplex I have under contract. It is a buy & hold property that I need to get rent ready. The current heating system is an oil fired steam boiler and radiators. The system is very old and at a minimum the boilers will need to be replaced. But the question is should I replace the steam system entirely?

I have several ballpark quotes from two different contractors.

Replace steam boilers: ~$4000 per unit

New gas boiler and forced hot water system: ~$12,000 per unit

New gas furnace and forced hot air system: ~$12,000 per unit

In your experience, would it be worth it to replace the entire steam system with one of the gas options? Several factors to consider would be the risk of a child getting burned on a radiator, long term maintenance costs of the different systems, and if I would be able to charge more rent with one of the gas options, etc.…

How will these options play out in the long run?

Are there other factors I should be considering?

Thank you,

Matt