Funding HVAC system

[Ronald Stephenson]

Situation: Business checking can not afford HVAC replacement. 

Ask: What are your suggestions in this type of situation? What did you do if you were in this type of situation? 

Background: I have a rental property in Wilmington, Delaware. I've been building the property's maintenance savings since acquiring the property, and now the HVAC & Gas Furnace requires a replacement; I've received three quotes, each above the property's maintenance savings. I attempted to acquire a business line of credit and was denied. I can pay out of pocket for the replacement in this situation, but I wanted to keep it within a business framework. Currently, looking at other lending opportunities. 

[Mario Ciccarelli]

This happened to me a few months ago on a new property without much reserves built yet. On top of it, I only have three rentals, two of which are the rented, the third is under rehab. So my overall business funds, and money in general is low. 

The AC failed and was 20+ years old and the furnace was too old to fit the newer air handlers out there. So the total cost was about $14k. The HVAC company allowed me to pay with a 0% interest for one year loan. I am just sacrificing all cash flow for one year and having the rent cover it. The yearly profit from this house will just about pay all this back. 

That’s the only option I see without sufficient reserves to cover this type of situation.