ROI on adding HVAC to a duplex?

[Bryan Scibilia]

Please, I need advice. I'm wrapping up the remodel on a duplex which is currently set on electric heat, I have the option of adding HVAC for a decent price, each unit will have dedicated equipment. I have no experience with HVAC, especially in an investment property and I'm not sure what the final ROI will be. There should be value added to the property, this should reduce vacancy, BUT do the upfront costs and maintenance $'s added to my CapEx budget negate the added value? Everything is on pause until I decide, what would you do?

[Nathan Schiess]

@Bryan Scibilia I think it really depends on the market and the property. Do other properties that are renting at the price point and in the area that you are trying to rent your property at have similar HVAC systems to the one you are looking to install? It's all relative to your market. So far as ROI, you don't want to over improve the property. Again, it goes back to the market but there is definitely a ceiling for what renters will pay in an area regardless of home many updates you add. Look at comps and base your decision off of that. If the market doesn't justify the expense, don't add it. If all your comps have it, it may be worth it. Good luck!