Expensive chimney repair quote

[Sean Anayah]

Hi all,

This is my first time posting. I own a small 2 bedroom bungalow near downtown Sacramento that was built in the early 1900's. It is rented out and the rent covers the mortgage. The tenants asked that I call a chimney sweep to clean and inspect the chimney before they use it for the winter; no problem. The chimney sweep visited the house today and sent me the quote. I am surprised by the cost estimate, because the house is a very simple bungalow and when I had the home inspected during purchase, most of the house only needed simple repairs and I had assumed previous owners had kept up with most maintenance issues. So, I want to check to see if anyone else has any recommendations. 

Here is the cost breakdown: 

• Install chimney cap: $1,630
• Crown coat: $380
• Waterproof chimney exterior: $495
• Flash seal: $599
• Install 16 ft of insulated stainless steel flue liner: $8,308
• Smoke chamber parge damaged area: $1,361
• Rebuild firebox: $2,610
• Install mount damper: $736
• Install approved heath rug: $215
• Total: Approximately $16,000. 

My options:

1. Shop around for other quotes and go ahead and pay for the repairs. 
2. Seal the chimney and install a gas or electric fireplace. 
3. Do nothing (would probably at least install the chimney cap to prevent anything falling in), and ask the tenants not to use the fireplace and make it decorative. 

Please let me know your thoughts. Thanks, Sean.