6 Plex HVAC Conversion/Decisions to Make

[Will Lawson]

Buying a 6plex built in/around 1890. The building is separately metered with each apartment having their own furnaces and existing duct work, but with window units and not central air or ductless systems. We want to eventually do away with the window units as we slowly upgrade the apartments whenever we have vacancies (at least that's a rough plan). Four out of six of the furnaces are old (from 80s) while two are only 5-10 years old and all have existing refrigeration lines to hook up ac units. The apartments each have separate bedrooms and in some cases a separate kitchen area walled off as well. In a couple of the apartments, window ac units are not applicable in every room due to the types of windows. To compensate, tenants have fans and open the windows when they can. My hvac guy said half of the units are good candidates for the ductless systems while the other half not so much. Each unit has tall ceilings so exposed spiral ducts is also an attractive option (not considering cost) while tearing out the existing ducts to add space. I have my reservations about the ductless systems due to air quality, cleaning and maintenance involved with tenants having pets, and the eye sore of having 6 of them hanging off the side of the building. 

We are looking to hold this property for at least 5 years if not as long-term investment. We currently pay utilities, but would prefer to put them back on to the tenants and plan to do so regardless of whatever hvac system we go with.

Since there is existing duct work, would it be better for us to just bite the bullet and install central air for each unit or are the ductless systems the better option?

Thanks in advance!

- Will, Pace Property Group LLC

[John Teachout]

Just wondering why you're paying utilities if the units are separately metered? That's likely a significant profit eating decision.
Also, is going to new AC systems going to increase your profitability vs leaving them with window units? If not, why change things?