Let's talk furnaces! Open to suggestions on how to move forward

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Let's talk furnaces! Open to suggestions on how to move forward

Anthony Simboli
Investor · Londonderry, NH · Member since 2015 · 163 posts · 59 votes

Hey BP,

I am about 2 weeks away from closing on another property (2 family duplex!). Like my other properties I seem to always find the ones with only 1 furnace. The age of the system is unknown but having some experience replacing them in the past I know it's towards end of life. It is currently a oil forced water burner with 1 oil tank. 

My question to you all is:

1. Should I replace with 1 unit (a stronger and more efficient system) and keep the zones for both units?

2. Should I replace and add a 2nd furnace (2 new systems)

3. (side question) if possible, I'm working with the city right now (Manchester NH) to determine if natural gas is an option and how much that would cost. Has anyone considered the switch and was it worth it?

I'll be living in one unit for about 2-3 years most likely while I rent the 2nd unit. Then the plan currently is to rent both units.

Any information would be great. Furnaces always seem to be my kryptonite so I'm trying to jump on it early before I even move in or rent to tenants.

Thanks!


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Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
5y
Originally posted by @Anthony Simboli:

@Joe Splitrock thanks Joe! Appreciate the advice. I just get concerned I was 0-2 on furnaces in my last properties. Maybe just bad lucky and timing.

I agree with the natural gas but my concern is the potential cost to get everything setup, and like I said I’m waiting to hear back from the city to see if it’s even a possibility and then I’ll have to try and figure out the costs involved.

Thank you

 I have had inspectors tell me a furnace is at the end of life many times. One time, the furnace lasted five years and another time it lasted one month before the heat exchanger exploded. I have learned to be careful on proactive replacement. If you can squeeze a few years out of something, it can help you greatly in the long run.

Of course it is cost/benefit analysis. If you can save on your monthly bill and avoid emergency replacement in the winter, that has value too. I agree on natural gas, run the numbers. If hookup costs are too great, it may not work out financially. 

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  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    5y

    @Anthony Simboli some of those old systems last a very long time. I have seen some 40+ year old unit that just get cleaned and last for many more years. 

    I would not split the units. One system by itself will be more efficient than two separate systems. There are many fourplex in my area with on boiler for the whole property and it works great. The heating cost is much lower than forced air or individual units.

    If you are upgrading, I would definitely look at switching to natural gas. It is cleaner, more efficient and you avoid delivery which can be a pain if they forget to deliver.

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  • Anthony Simboli
    OP
    Investor · Londonderry, NH · Member since 2015 · 163 posts · 59 votes
    5y

    @Joe Splitrock thanks Joe! Appreciate the advice. I just get concerned I was 0-2 on furnaces in my last properties. Maybe just bad lucky and timing.

    I agree with the natural gas but my concern is the potential cost to get everything setup, and like I said I’m waiting to hear back from the city to see if it’s even a possibility and then I’ll have to try and figure out the costs involved.

    Thank you

    1Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    5y
    Originally posted by @Anthony Simboli:

    @Joe Splitrock thanks Joe! Appreciate the advice. I just get concerned I was 0-2 on furnaces in my last properties. Maybe just bad lucky and timing.

    I agree with the natural gas but my concern is the potential cost to get everything setup, and like I said I’m waiting to hear back from the city to see if it’s even a possibility and then I’ll have to try and figure out the costs involved.

    Thank you

     I have had inspectors tell me a furnace is at the end of life many times. One time, the furnace lasted five years and another time it lasted one month before the heat exchanger exploded. I have learned to be careful on proactive replacement. If you can squeeze a few years out of something, it can help you greatly in the long run.

    Of course it is cost/benefit analysis. If you can save on your monthly bill and avoid emergency replacement in the winter, that has value too. I agree on natural gas, run the numbers. If hookup costs are too great, it may not work out financially. 

    1Reply
  • Anthony Simboli
    OP
    Investor · Londonderry, NH · Member since 2015 · 163 posts · 59 votes
    5y

    @Joe Splitrock Thanks for the information. I'm going to look into the costs of getting the natural gas (if possible). I assume the expenses will be high to run the gas lines to the house, if the gas is even in the area I'll be living.

    Appreciate all of your help

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  • Russell W.
    Rental Property Investor · IL · Member since 2015 · 165 posts · 107 votes
    5y

    Just to throw in my two cents, something to consider for option 2 is the fact that you would likely need to replace some or all of the ductwork to each of the units. It is currently sized for a single furnace, meaning the cross sectional area of the main supply trunk is going to be larger. If you split into two separate systems you'll need to downsize the main trunk(s) to allow for adequate air flow (otherwise you'll find that you're not getting enough pressure at each of the registers). At a minimum you will definitely need to add a new return plenum for the second furnace so you are pulling return air from each individual apartment. I'm sure you have this figured already but thought I'd mention it. 

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    5y

    I'm with Joe. I don't replace things just because some expert tells me it's near the end of it's life, particularly when it's a product built 30+ years ago. Things back then were built to last, unlike modern crap. I would set the money aside but stick with the current unit as long as it's functioning.

    When you do replace, my preference is to separate things as much as possible. If you can afford it, get two separate furnaces.

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  • Anthony Simboli
    OP
    Investor · Londonderry, NH · Member since 2015 · 163 posts · 59 votes
    5y

    Thank you all! Appreciate all of the feedback so far. Just a few updates, unfortunately they cannot get gas lines to my property at this point, and even if they could they mentioned the cost which is not worth the switch.

    I believe I’m going to hold off for now. No one told me the system was bad, I just know it’s older so it was more a proactive approach if anything before doing some remodeling and such. It is hot water not forced air. So I’ll likely keep as is for now. Thanks!

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  • Jim S.
    Sterman, MI · Member since 2017 · 378 posts · 306 votes
    5y

    Run it for a year and see what it costs. 

    1Reply
  • Scott Mac
    Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
    5y

    HI Anthony,

    If it were mine I'd try to get the natural gas option approved, and I'd go with a separate one for each unit.

    More upfront cost, but you don't have to buy oil, or worry about it not being available sometimes.

    And what did you say about only one furnace--"Like my other properties I seem to always find the ones with only 1 furnace".

    You know the value of two furnaces.

    And I'm not pro boiler--If the retrofit was relatively simple ($$$duct work issues$$$) I might think about switching over to forced air on natural gas, and add electric water heaters if the old system was also doing that.

    Just my 2 cents.

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