Small Multifamily with no central AC

[Dustin Espinoza]

Hi BP,

While driving for dollars, I came across a small multifamily (possibly a triplex) that I would like to pursue; the only thing I am concerned about is that it does not have central air. All units appear to have an individual AC window units. This property is about 30 min south of Charlotte, NC and if you are not familiar with this area, the summer’s temperatures can get up to 100+ degrees and very humid. AC is a must in this area and majority of rentals have central air. I would like to hear the opinion of other investors that own properties in a similar climate. 

- How have you handled this issue?

- Is having no central air a deal breaker?

- If not, have you had to install central air to keep up with competition?

- What’s the ballpark cost of a central air installation in a small multifamily?

Any suggestions or advise welcomed

[Nasar Elarabi]

If the price for the triplex is GOOD then  thats the most important thing.  Yes, you can still rent the unit with window units. you might not get as much as a unit with HVAC but if you charge 50-100 cheaper then you will not have any issue with renting it. So most important thing is to BUY IT RIGHT. if you are adamant about putting a HVAC unit expect to pay between 4500-5500 to have it done RIGHT. I did one on my triplex about 2 years ago. Of course if you get closer to 4500 thats a GOOD price so hop on it. I am also in the same area as you if you need a licensed HVAC guy. S/N if your open to wholesaling the triplex I'm still buying for the right price.