Separating Out Heat (HVAC Advice Needed)

[Ian Livaich]

I am heavily considering submitting an offer on a triplex (2500 sq. ft.) in New Jersey as my first investment property. This would be a BRRR deal. I am looking for insight and expertise with the HVAC system, because I am newer to real estate investing.

There is currently one natural gas furnace in the basement that pushes air to all three units and floors.  I would like to separate the heat for each unit so each tenant would be responsible for paying for their usage.  However, I want to choose the most cost effective option.  After talking with some local investors, here are the potential options:

(1) Purchase two more furnaces and install separate ducts from the basement to the second and third floor units to separate the heat for each floor.  Can someone give me a general range of the cost for this type of job?  I have been told that this can very difficult and costly to do due to opening walls/ceilings.

(2) Install a mini split system (outside condenser and wall units) for the second and third floor.  I have been told this option could be easier and cheaper (approximately $4k-$6k for materials and labor). Does that estimate sound about right?

(3) Forgo installing new furnaces/ducts.  Instead, save the cost of doing this work, rely on the 1 furnace in place, pay for the tenants' heat and try to recoup the costs through higher rents (heat included) or try to bill it back to tenants somehow (e.g. RUBS).  At a later date, I could install the furnaces if I choose to do so. 

Each option has advantages and disadvantages -- what does everyone think?  Are there any other possibilities?

Thanks for your time and input,

Ian