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All Forum Posts by: Seth Borman

Seth Borman has started 5 posts and replied 545 times.

Post: Oil Furnace Coversion

Seth BormanPosted
  • Rental Property Investor
  • Phoenix, AZ
  • Posts 553
  • Votes 314
Originally posted by @Awet Hagos:

@Cody Neumann not really “country” but an unincorporated part of the city and the nearest gas line is 900 feet away and it would cost $80k to have it connected.

@Seth Borman yes, we pay about $.0658 for electricity usage. What is LP?

What about baseboard or wall furnaces? The SFR is only 1200 sqft.

 LP is propane, and it is expensive.

I would look into both central heat pumps and mini splits. The central air will provide better performance but cost more.

Post: Oil Furnace Coversion

Seth BormanPosted
  • Rental Property Investor
  • Phoenix, AZ
  • Posts 553
  • Votes 314
Originally posted by @Cody Neumann:

@Awet Hagos

Is your property out in the country if there is no natural gas hookup?

I would convert to LP before I convert to an electric furnace due to high electric costs near me even if the tenants are responsible?

 Are you paying $0.075/kWh like we are? In our area a heat pump will have a COP of 2-4 depending on the temperature, which means it will use 1/2 or 1/4 the amount of electricity than an electric furnace will use. 

I mean, I'm hard pressed to understand why anyone would install LP in a place where the lowest recorded temperature ever is only 5°F. 

Post: Oil Furnace Coversion

Seth BormanPosted
  • Rental Property Investor
  • Phoenix, AZ
  • Posts 553
  • Votes 314

Heat pumps! We have seven units converted to them within a few miles from your site. We increased the rent by 10% when we added them.

Post: Energy Efficiency for Rental Unit

Seth BormanPosted
  • Rental Property Investor
  • Phoenix, AZ
  • Posts 553
  • Votes 314

This is called the "split incentive" problem.

Post: Can tenant take central AC unit paid for by tenant

Seth BormanPosted
  • Rental Property Investor
  • Phoenix, AZ
  • Posts 553
  • Votes 314

Generally speaking FFE becomes part of the property, not the leasehold.

This is important for people in the commercial business that are dealing with things like kitchens.

Post: Intel Corp to Chandler, AZ | Investment Ideas

Seth BormanPosted
  • Rental Property Investor
  • Phoenix, AZ
  • Posts 553
  • Votes 314
Originally posted by @Aaron K.:

The strange thing about the Phoenix metro is the East Valley is starting to run into barriers and having to expand southward but unlike many cities that have this problem like LA or San Francisco it isn't the oceans or mountains that block development but the native american reservations.  That being said the city still has room to grow outward and it is not yet clear which cities are likely to become the secondary job centers.

 Five years ago when I was in grad school at ASU we met with the people that developed Eastmark and also talked about Verrado... basically the exurban developments are under performing because they aren't finding as many people that want to live on the edge of town.

Has something changed?

Post: Split AC vs HVAC system

Seth BormanPosted
  • Rental Property Investor
  • Phoenix, AZ
  • Posts 553
  • Votes 314

HVAC sizing is one of those things that really gets people worked up.

The old rule of thumb was one ton per 400 SF.

New houses that are well built with tight envelopes and lots of insulation can often hit one ton per 1,000 SF, even in cold climates.

The right way to size it is to use a heat load calculation, a blower door test, and validate against your utility bills.

A simple Manual J is often off, and I can tell you from experience that most contractors don't do them anyway. Before I got savvy I bought a 75,000 BTU furnace for a gut remodel in Los Angeles. I would have been better served with a three ton heat pump. The record low in LA is 28°, which is really warm by heat pump standards.

Post: Split AC vs HVAC system

Seth BormanPosted
  • Rental Property Investor
  • Phoenix, AZ
  • Posts 553
  • Votes 314
Originally posted by @Peter Morgan:

@Zee Abbas

Are conventional split systems and heat pumps one and the same? There is a gas furnace already with duct work already there.

 A heat pump is an air conditioner run in reverse. Instead of removing heat from the inside it brings heat from the outside in. The new models work well in the cold. They can replace your furnace, or merely augment it when it's not below freezing. 

Post: Split AC vs HVAC system

Seth BormanPosted
  • Rental Property Investor
  • Phoenix, AZ
  • Posts 553
  • Votes 314

Mini splits don't distribute air very well, so they work best when used in small spaces. We've installed 8 of them, the only complaints were on a two bedroom unit that didn't get warm in the winter.

A regular split unit is better for a unit this size. The information on sizing isn't correct, the worst thing you can do is oversize the units because they won't control humidity and they won't last as long. If you are selling you might not care... except that larger units are generally more expensive. 



Post: City of Los Angeles making landlording even harder

Seth BormanPosted
  • Rental Property Investor
  • Phoenix, AZ
  • Posts 553
  • Votes 314

The bigger deal in there is making cash for keys into a form of harassment...