You can reduce the price if you're not buying the actual business (equipment, web sites, good will, etc.).I was considering the purchase of some management contracts recently and planned to make a low offer because I know the quality of the management contracts are weaker than mine.

There are many AFH's available for rent that are already equipped for business with landlords ready to offer long-term leases (5+ years). 

Tools and Equipment……………………………………………… 143Liability and Pitfalls in H.I. …………………………………………… 144Why You Need a Pre-Inspection Contract…………………………….. 144Resource for H.I.

Luckily the gas company will bring the lines to my house for free, but I will have to fund the costs to install the equipment.

You could work a deal and take a speed boat or airplane or equipment as collateral for a loan, just not the borrower's residence or other covered property.The two biggest issues are the ability to pay requirements and the RMLO seal on the note.ABTP must be done properly, even if you do a deal that isn't covered, you still have predatory lending and dealing issues and if you don't conform there on any transaction you can still be nailed, may be not under DF, but nailed just the same.The RMLO seal must be affixed to any covered note/agreement to be valid.

That plan may be holding until the market raises to a point where it will benefit me more to sell rather than cash flow or to sell before warranties or expected life expectancy on major appliances/equipment is up.Much appreciated.

I think the food/equipment/gas expenses etc will be.

Seems like the cash flow would be there.What is the condition/age of HVAC equip??

He had access to construction equipment at the time and did a lot of the work himself (he worked for a construction company at the time).

In the water industry we have equipment available to use that serves to identify leaks on mains, which is kind of what you're aiming for, but it's nowhere near cost effective for your application here.