Will installing Electric baseboard affect my ARV?

Question

Hi, currently have a house that I’m flipping that the boiler is shot. It currently doesn’t have any gas lines either. Would replacing with Electric baseboard effect my ARV a ton? It is 1,000 SQFT and located in the Northeast part of the U.S. ARV is $160k right now so don’t really want to spend $8k on a new boiler since that cuts so much into my profit

Account Closed · Answer

Some people like electric baseboard since you can control each room. It depends on the cost of electricity as compared to other heating sorces. It also depends on what is normal for the area. For that, a quick trip to the local Home Depot and ask the heating guy.

Jose Jacob · Answer

Since you are flipping the house, you need to find the cost and the return on your cost. If you spend $8000, can you get at least $12-$15K more cuz you installing the heater. ARV is depending on the local area. I recently spend $!@K for a tankless heater and I got $20K more when sold due to that new system.

Good Luck

Bill J Fay · Answer

Check comps in your area. If you're the only one with electric baseboard, that could be a problem on your sale. Also, if you ended up keeping this property and renting it out, you may have a lot of 1 yr renters if the electric is expensive.

Bob S. · Answer

No,

Richard Dale-Mesaros · Answer

Going with electric will generally be perceived as a negative and cut down your buyer pool to some (or a great?) extent. If you REALLY feel you have to go with electric baseboard, perhaps consider the oil-filled ones, which are more efficient, but cost more. Selling a house in NH with all electric heat may mean a lower sale price that equates to a similar amount to the install cost for a new boiler. Selling an electric heat home may take longer meaning extended holding costs which will also eat into your profits. If it's a great house in a great location in one of our low inventory towns, perhaps this issue is less of a concern. Just my thoughts, good luck!:)

Alecia Loveless · Answer

@Quinton Schultz I’m in northern New Hampshire and electric baseboard is a death blow to most deals. Our electric costs are so expensive here it’s ridiculous. I’ve got a 400 sq ft apartment with electric heat and during our winter months when it’s usually always below freezing and sometimes at night as low as -20 the tenants say their electric bill can be as much as $500/month.

I’m in the process of converting my other buildings from oil to propane heat so each unit can be individually metered and every tenant can pay their own heating bills. I will be converting the electric apartment over to propane as well either late this fall as well or early next summer as it will be much less expensive.

If you’re flipping the property it probably won’t be cost effective to do this but if you ever do any buy and holds on multi families you might look into it. I’m going to make my money back in 2 years based on the cost of me paying for all the heating oil in the multi families I’m converting and then after that it’s an infinite win of increased cash flow every year thereafter.

JD Martin · Answer

In that case you might just as well get a good solid 200A service panel and put in the baseboard heaters. You'll spend some money on copper - if you haven't seen wiring costs these days it'll make your heart flutter - but the heaters themselves are relatively cheap, and since you're flipping it the long term doesn't really matter much to you.

Will installing Electric baseboard affect my ARV?

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