HVAC vs. Window Units and oil heat

[Adam B Henderson]

Hey All,

***buying a 3 unit to BRRRR****

The 3 unit multifamily currently uses oil heat and window units.  For us to put HVAC in it is going to cost about 60k more with rewiring, replumbing and ducting.  I think we could get a little more in rent if we have HVAC, it will definitely look better and I can eliminate the cost of oil (400 a month).  Only thing is will our appraisal be even close to be that much higher?  I mean I could see it being maybe 20k higher for the HVAC but 60 or 80 (to cover the cost ay 75% ltv).  Does anyone have any experience with this?  Maybe some appraisers have some insight?

Thanks,

Adam

[Will Barnard]

Central HVAC should certainly add value, but your $60k cost seems extremely high for just 3 units. Not sure how many square feet the units are or how access is to duct everything (of course you can also use a ductless mini split) but your cost should be half that.

Window units look terrible and eliminate the use of that window (for the most part). Getting more energy efficient can also help your cause if you are paying utilities. I'm sure the added rental value could also help return the investment as well as the forced appreciation. That said, I don't know what market you are in and unless it is So Cal, I don't know your market. I am the owner of a licensed HVAC company so for cost and layout, that I am speaking from real world experience and not just opinion.