to replace A/C or not?

Question

Hi BP community. Here in south Texas an A/C/heater is needed basically year round. That being said my current unit 13 SEER (Goodman) being over 15 years old has a blower that has gone out. This unit is rusted out, has had leaks in the past. Installed by previous homeowner. This will cost about $400 to replace in addition to $350 ive already spent earlier this year to keep in going. I plan to rent this property by early march of next year.

Ive gotten about 4 replacement quotes ranging from $4775 to $7k, the less expensive 2 being as follows:

Repair vendor 1: Install a 3 ton 16 SEER PAYNE system, 10yr wty for $4775. Less a $375 energy efficient rebate. This vendor was referred to me by my trusted electrician. This vendor is the owner of a very small AC company. No reviews online found of this company good or bad. The more i read about this model PAYNE the more i see it as a 2/5 star system with LOTS of problems down the road. Although the vendor seems genuine to stand by his work. It is a new unit and the vendor/owner seems very experienced.

Repair vendor 2: Install a 3 ton 16 SEER LENNOX system, 10 yr wty (free maintenance checkup twice/yr). This vendor is a bigger company but has rave reviews for workmanship online. This brand also has rave reviews online as well. Same energy efficient rebate. $5,500 installed.

So with 2 new different brand systems and vendors, is it recommended to pay the extra $725 for vendor 2? Or do we keep the costs down and keep vendor 1 hoping the new unit doesnt cause problems later on? OR should i just keep repairing the old unit and cross my fingers?? Are these prices still too high? Im trying to keep costs down but am on the fence on this one, never replaced anything this expensive on properties... what have other investor thought processes been?

Gabe E. · Answer

@Steve Babiak. Thanks Steve. I gladly took your advice and asked vendor #1 of installing the Lennox unit instead of the originally quoted Payne unit. Their quote: $5,697. I will stick with vendor 2 @ $5500 with free maintenance. Ive yet to hear back from the latest vedor who went to the property this past Friday. But they did state the $5500 quote would be hard to beat.

Jeff B. · Answer

Sorry, I wasn't clear in my response.  Do Not install a builder grade HVAC "Payne" unless you are flipping your problems onto the buyer.  The installation by a skilled technician is a major factor in the performance and longevity of the HVAC system.

I would install the Lennox with the reputable well reviewed company who is going to do a follow performance evaluation as well as the maintenance checkups.  I pay a couple hundred more from my trusted installer in Florida but I have piece of mind that it was done right the first time, I should have minimal expenses for the first 10 years, and added value with increased longevity with a well maintained HVAC system.

Ahmed Porter · Answer

the bigger company is going to cost more more over head, and maybe I am a penny pencher I would get it repairs for 475 the summer is almost over if it works your able to keep your 5500 in your pocket for another year and use 5500 to work on something else.and you still have the # for the install crew and most of the time they can install in a day if it goes down . Payne is not the best system try brant should be same ball park.Also after you pay the 475 for the repairs you can open a cash account at a supply place and order the units and the coil line and just get it installed and will save you some money alot of the mark up is on the equipment.IF you go to a 2rd party vendor they will do it 1st party most of the time will tell you no they want you to have a HVAClic  you will  save about 20% of the cost .

Steve Babiak · Answer

See if vendor #1 will quote the same Lennox equipment. That way, you're not just comparing apples to apples, but red delicious apples to red delicious apples. Then you just have the labor and overhead as differences, and that will tell you which is actually more affordable.

Gabe E. · Answer

@John Hamilton, John i think those are the words that reign 'jackpot' to me that were sublimilally (word?) floating around after weighing some options/scenarios. Hinging on the latest quote i receive from another repuatable dealer, it just comes down to the cost of this other reputable dealer's system install. New system no doubt is the end game for this case. This will  be a buy and hold for the next 5 year window.

John Hamilton · Answer

@Gabe, to me vendor #2 is a no brainer, if you are keeping the property for the next 5 years. Less calls from your frustrated renters at the most inconvenient times (A/C in the Summer and Heater in the Winter). Prices may change based on the time of year as demand goes up during peak times. It could take longer as their calendar has less availability.

If you don't know the condition of the heater based on your sub-par code lines, you may want to bite the bullet and go for a full HVAC install, which might be more with new line replacement than the original quote.

Going with just the blower replacement could save you big money, if the unit lasts and nothing is wrong with your heater. Summers are brutal in Texas, but winters are brutaller (new word?). You might end up having to replace your whole system if either one crashes. So, it's up to you. Say you replace the blower and you find your heater doesn't work. Now you have to invest more money just to get that running. That could be $2,000 to fix. Then you find your A/C crashes this summer after replacing your blower and fixing your heater. Now you're up to another $3,000. You still have the crappy system that could last a few years, yes, but no warranty or service attached, perhaps. Not mention service costs for both calls. and who knows what else goes wrong, which could up the ante. IT might have been better to dig deep and pay the vendor now and save your headache and renter frustration and relax over the next decade, with proper maintenance of course.

JD Martin · Answer

Ruud is a good brand and yes is connected to Rheem.

Gabe E. · Answer

@JD thanks JD. Will be discussing another bid tomorrow on a Ruud install, which i understand is in the Rheem family. I'll post how it goes.

JD Martin · Answer

Lennox is a good manufacturer. I would be comfortable with Rheem, Lennox, Trane. Goodman is pretty common around here but I prefer one of the above.

Gabe E. · Answer

@ Damon. Thanks Damon, I'd like to get to the point of having a nice list of trusted reliable fair priced vendor list. So far i know a professional painter, who now does it on the side for a great price.

to replace A/C or not?

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