Heating/Cooling Un-Permitted Additions? Value Add or Waste of Funds?

[Mitch Kistner]

Good Morning All, 

My name is Mitch Kistner and I am just beginning my journey in LTR's. I recently went under contract on a Duplex in a 55+ community in Mesa, AZ. I am looking to BRRRR the property, with hopes to refi in 6-18 months (depending on the market and interest rates) but sooner the better.

During inspections, I realized that one of the units features (2) non-permitted enclosed rooms. One is a laundry room between the kitchen and carport that's 10x14 (140 sqft) and the other is an enclosed patio (AZ room) that has drywall and dual pain windows. The AZ room is roughly 115 sq ft.  Both of these rooms do not have AC/Heat.

The AC units for each unit are 20 years old and on their last leg, so I know at some point I'll need to replace them. I recently received a quote to replace each unit separately, as well cost to run duct work to each of the additions. 

I'm trying to understand if I heat/cool the non-permitted rooms how much value I'll be adding to the property to see if it outweighs the cost for install? I'm assuming yes, but not certain. In the same vein, how much value add is there by simply replacing both AC Units? 

Property info and quotes below:

Duplex - 55+ Community

1,728 sq ft - Roughly 864 sq ft per unit (not including additions)

Each Unit is a 2 bedroom / 1 bath

Cost to Replace each AC Unit = $7,500 ($15k for both)

Adding Duct Work to 10x14 Laundry Room = $500

Adding Duct Work to AZ Room = $750

Laundry Room - 10' x 14'

AZ Room - 8.5' x 13.5'