Should I Finance A Mini-split?

[Brandon Allenczy]

Hello BP!

I need your input on a decision I'm making for our househack. I woke up this morning and realized the oil in our furnace had run out again after a little over a month since we last filled it. Each time we refill it, it's around $600. Assuming we have to fill it for 4 months out of the year, that's around $2400 for the year.

I'd like to buy a mini-split system for the duplex. I've looked at the equipment and we should be all-in to this for around $4300. Since we recently purchased the househack, we don't have the reserves right now to pay $4K out of pocket but I see there is an option to finance it at 7%. The payments would be about $141/month over 36 months so a total of $5076 ($1692 per year) . Even with this interest, I'd be saving around $708 per year ($2400 in oil - $1692 in mini-split payments). Plus, having central AC/Heat would up the home value and help it rent better. 

Can anyone think of a reason for me not to do this? Am I missing something here? Seems like I could get a better system, it helps the unit rent better, and saves $700/year.