Replacing vs. Fixing HVAC

[David Yu]

Hello BP Members,

I'm proud to say that I have finally closed on my first deal and I am eager to embark in this journey of Real Estate Investing.
After closing on this 4-Plex I ordered an HVAC Inspection because one tenant started to see leakage from the ceiling and another complained that one of their bedroom was getting poor air flow.

The HVAC inspection result showed that I would need a complete HVAC replacement which will cost me close to $40K (10K/door), an expense I did not expect to incur. I am awaiting to schedule an inspection with 2 other HVAC contractors to get their take on it.

I'm hoping to gain some wisdom from some of you who might have been in my situation.

How did you deal with the situation? What other steps should I take to make the right financial decision?

Looking forward to see some of your reply!

Thank you,
David Yu

[Zee Abbas]

The decision to replace or fix for me really depends on the age or issue. Old unit or burnt compressor? Replace. Leaking ceiling? Looks like the condensate drain line needs to be flushed out, which is just a regular PM. While the techs there, have him install a float switch so the unit will not start until the water level drops. May need to replace the indoor fan capacitor on the one with low airflow. All three can be done in a 1.5 hr service call. Have the other guys come in and give you quotes but you probably don’t need to replace anything at all. I’d start doing these basic PMs every season to keep the emergencies at a minimum. Besides, 10k is pretty expensive for a standard 3 ton mini split.