High efficiency boiler in a triplex?

Question

I have a three unit buy and hold property in Malden Massachusetts that has a separate gas fuel forced hot water boiler for each unit. The boiler in unit 2 needs to be replaced. The state of Massachusetts offers 7 year interest free financing on high efficiency boilers, however I've heard conflicting things about them. For a buy and hold I plan to keep for the long term, should I replace the boiler with a new, traditional one, or go with the high efficiency?

Pros of high efficiency that I see:

- 7 year interest free financing

- more efficient (maybe I could market this in the listing)

Cons of high efficiency that I see:

- about $2k more to install

- people seem to complain about their reliability

- the lifespan seems to be half of traditional boilers

- repairs in general are more expensive

If I installed a traditional boiler, I wouldn't be able to get the interest free financing. Has anyone else faced this decision? Which way did you go?

Daniel Viola · Answer

Hi Ben, I'm a plumber and my opinion is that the high efficiency stuff isn't really worth it. They sound great but the supposed savings on energy don't come close to making up for the cost of installation and they are good for a maximum of 15 yrs whereas you can get upwards of 30 yrs with a traditional boiler. The interest-free financing is great if you need it but long term I would go with a traditional. I did in my house. I'm sure some would disagree with me but when people who understand the equipment get honest, a lot of them feel the same way. Good luck!

Timothy Meuse · Answer

Ben I am a plumber as well and I agree with Daniel. In addition to the added up front cost you also have to take into account that they need to be serviced at least every 2 years at about $200. When parts go on them they are more costly then your traditional cast iron boiler parts and not always readily availablr. There are so many plumbers out there that don't know enough about them either. If the tenants pay their own utilities I would put in a traditional cast iron boiler low maintenance, cheaper, and last longer. If you want to save the earth and have unlimited funds/time for repairs/maintenance go with the high efficiency. Myself I would put in a cast iron boiler even though most plumbers will disagree with me.

Jon Roland · Answer

Ben, As you are in it for the long haul, it might make sense to spend the little bit of extra money now. Over time the efficiency gained from having a condensing boiler will likely save you cash over the traditional style. Up front costs are an important consideration, but if you can afford it it should save you money later. Also keep in mind what is in place now as the venting requirements are different for a high efficiency boiler compared to traditional. Just an FYI just be careful with this financing if it's through Massave, I have found that there are smaller utility companies in massachusetts that don't pay into the program and you would not be able to qualify unless you are with someone like n'grid or Eversource. Good luck!

Eddie Werner · Answer

Does each unit have separate electric meters that tenants pay? I would consider and price out installing baseboard heat for the units when the boilers go. It's way less expensive and they are very low maintenance.

Jon Roland · Answer

@Ben Staples, the venting requirement is different as the newer boilers will need a fresh air intake as well as the exhaust. I have seen a number of these run in small diameter piping so they are much easier to contend with compared with older exhaust lines that typically vent through the flue. hope this helps.

Kurt K. · Answer

I just got done putting in a new Crown boiler in a SFH. Also installed a new chimney liner that brought the vent up to code. The boiler was a traditional boiler and costed about $4300 to install. So far, so good.

Ben Staples · Answer

@Timothy Meuse thanks for the thoughts. It really does seem to be the way to go. I will keep you posted!

Ben Staples · Answer

@Rich Ng definitely. Both Daniel Viola, and a plumber I am currently talking to have mentioned the significant difference in average unit life. It seems to be well known, mostly driven by the new technology of high efficiency, and their high burn temp. I also had a plumber inform me that while traditional units can go a year or so without service, high efficiency units MUST be serviced every year, otherwise they will burn themselves apart.

Ben Staples · Answer

Hey @Jon Roland, thanks for the thoughts. While the cost savings from the increased efficiency are very appealing from an environmental prospective, because the utilities are separately metered I'm not sure the difference would be enough to warrant increased rents. You bring up a great point around venting. Would the venting requirements be greater, or less than a conventional boiler? I'm assuming greater because they burn hotter? That being said, I'm planning to vent this unit out of the side of the basement rather than through the chimney with the goal of eventually removing the chimney once I change over all of the boilers.I have National Grid currently, but another great point for people to know. I have thought about shopping energy providers...Thanks!

Ben Staples · Answer

Hey @Daniel Viola, thanks for the reply. Yes! That lifespan is exactly what a few people have referenced. While the interest free financing is very attractive, I just don't think the purchase of the high efficiency will be worth it. Thanks for the guidance.