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BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Updated 8 months ago on . Most recent reply

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92
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Damein White
  • Rental Property Investor
  • Cleveland Ohio
51
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92
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Most Popular Reply

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Kevin Sobilo#2 Tenant Screening Contributor
  • Rental Property Investor
  • Hanover Twp, PA
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3,017
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Kevin Sobilo#2 Tenant Screening Contributor
  • Rental Property Investor
  • Hanover Twp, PA
Replied

@Damein White, I don't look at this as a simple obvious question.

1. If you have an old furnace with existing duct-work then likely a 1 for 1 replacement of the furnace makes the most sense.

2. A mini-split shines because you can retrofit a house without duct-work without doing any real demo.

3. If you didn't have A/C before and would not be adding it with a furnace replacement then the mini-split might get you more rent and increase the home value a little.

4. Also, you don't specify the fuel source of the furnace. That could make a difference because if you're in a heating climate with a gas furnace that could be cheaper to heat with than an electric mini-split as they become less efficient at very low temps.

5. For BRRRR, you are holding the property so the home value isn't the only goal. You will need to maintain these systems and have them satisfy good tenants. So, keep in mind what a good tenant expects in your area.

For example, if you have an existing GAS furnace and central air conditioning already a simple replacement of the gas furnace gets people what is likely to be an economical heat source while also providing a/c which many rentals don't have. So, that would be a win all around. 

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