I have a 2 bedroom 1 bath  , 800 sq foot bungalow  for $35k that I am rehabbing to rent and eventually sell in 10 years (ARV $63k)Should I go with central heat and Air, as it would payoff for a resale later or a less expensive route such as a PTAC unit. 

@RickWell, your assumptions are mostly correct, but a NPN can go pooof into thin air and be worthless.

Just letting a little air out where you may have gotten pumped up a bit too much. :)  

Additionally, the white membranes significantly cut air conditioning costs in the summer. 

We are landlocked and surrounded by three private universities and an Air Force base, which makes us a unique market.  

I repeated the process and sold the second house prior to departing for the US Air Force Academy in 1979.

I was already considering real estate investing on a small scale, similar to what a lot of Air Force type characters do, by living in a house and renting the remaining rooms. 

The home only has window units and the seller does not have the funds to install central heat and air which is the main thing holding this house back.

Michael, this may seem like public airing of underware.  

I'm an Air Force guy myself and just got started with real estate investing about 8 months ago.