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Updated about 6 years ago on . Most recent reply

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1,052
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James Mc Ree
  • Rental Property Investor
  • Malvern, PA
803
Votes |
1,052
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High efficiency furnace, a/c, water heater

James Mc Ree
  • Rental Property Investor
  • Malvern, PA
Posted

I close on a new 3/1 SFR at the end of February. It needs minimal work, but has aged gas systems that are still operating. I am thinking I should replace them before a tenant is in there and affected by a failure, but am unsure on getting high efficiency systems or standard. My home inspector cited a need for a chimney liner ($1,000) as bricks are loose and 1 has fallen in. I can put those funds into high efficiency systems that are direct vented to the outside instead of through the chimney and avoid upgrading the chimney. Thoughts?

Water heater - Gas.  2008.  Operating without issue.

Furnace - Gas.  1995.  Operating, but needs work (inductor motor, maybe more - something about flame coming out horizontally)

Central air - 1995.  Presumed operational as seller disclosure did not mention otherwise.  Cannot test in Winter.  Ancient.

The plan would be to connect the water heater, furnace and an existing gas dryer into the direct vent to the outside.  I am waiting on quotes now for standard and direct vent options.  One contractor told me to expect the water heater price alone to double when going to a direct vent model.  That alone would eat the entire offset from the chimney liner if accurate.

I don't think high efficiency systems would enable increased rent right now, but it may reduce vacancy if I can successfully market the property as "comfortable living at lower cost."  Target rent is $1,400.  The home is an interior row home/townhouse in SE PA.  This will be a long term hold.  I don't know that I could market the property 10+ years out as having an advantage with high efficiency systems, but would avoid a disadvantage of not having them.

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