**I do not believe NC considers a non-functioning air conditioner as a property being inhabitable (please consult a lawyer and North Carolina tenant-landlord laws.) 

It has a newer drain system and air conditioner (which has been professionally disconnected and is in storage at the moment.)

IRA Pub 527 will tell you that there are three basic class life categories for your rental property. 27.5 year property is anything that is an integral component of the dwelling structure - such as roof, windows, HVAC, water heater, etc. 15 year property covers most of your landscaping items, such as new sod, sidewalks, trees, etc. 5 year property covers all the furniture and furnishings that you provide for your tenant's use (kitchen and laundry appliances, area rugs, furniture, window air conditioner, etc.

The $5k quote, if applied to a "typical" 1500 sq ft house would be fairly high retail for just an air conditioner.

So you figure on having to replace 4 HW heaters in next 3 years at roughly $600 each or $2400, leaving you only $1200 to cover minor repairs over the course of three years while putting away nothing for future roof repair, appliance repair or replacement, furnance and/or air conditioner replacement.

Even if two of the big items are done, you still have 7 air conditioners, 7 stoves, 7 fridges, etc.

This puts you around $1,200 additional dollars.A 1,200 square foot house, exterior paint and interior paint, should run about $2,000.This brings your initial cash outlay to $20,000 (on the conservative side; not including Air Conditioners) This brings your ROI to 6.2%.2) You definitely want to pay for what the investment is bringing in, not on its potential.

It was extortion and I refused to pay them and they served my tenant trying to collect the rent, my tenant ended up moving because I threatened to evict them if they paid them and not me, it was bad.If you do condos or single-family homes don't forget to put away reserves for items like air conditioners, hot water heaters and appliances.

If you have to replace an air conditioner system or water heater, it could wipe out TWO years of cash flow.

You can purchase air conditioners with SEER ratings of 18, but they will be of little help in a Canadian winter.