I'm evaluating a home that needs a new HVAC system (never had it) and a gas line (currently uses propane for stove, etc.). How much should I estimate that will cost, and are there any gotchas that should make me walk away from the house? It's priced about $20K under market value as a result of these needed repairs. If probably use it as a buy and hold and rent it out.
The only way to know for sure is to get bids. Does the house have forced air heat? A big enough electric service to add AC? If so, you're probably looking at $2-4K, depending on the details. If it doesn't have the ducting or needs an electrical upgrade, it will be more. No idea on the gas line. The line itself isn't too big a deal. Dig a trench and lay pipe. But the gas company may have hook charges and you may have to buy a meter.
Get multiple bids.
I always estimate high so I go around 5K and than get bids. I also get estimates on used units from my local contractors if I am going to put the property into my rental portfolio and sometimes I put in newer used or scratch and dent units and offer a homeowner warranty program for some lower end flips
Thanks Jon and John! I really appreciate it. Very helpful. On the"scratch and dent" units - would the contractor have access to those, or where else would I find them?
If it's using propane, then the gas company probably does not have a gas main close enough to do that hookup. Call the gas company to find out; they can then tell you how much to expect it to cost if the main is nearby.
When you say this house never had HVAC, then you should find out how much installation of ductwork will run from a local HVAC contractor. It will vary depending in the number of levels in the house.
@Lance Borden I would not hazard a guess at this one. There are too many variables that can cause significant price swings. I think you should look for contractors that advertise as "plumbing and HVAC contractor" to minimize the number of people you have to round up/coordinate for estimates and to do the work if you buy it.
Depending on a lot of things I'd be around 10-12 grand for all the duct work, furnace, ac and gas line. Then you have to pay for someone else to build the soffits, chases and patch holes I put in the walls. You need a bid though way too many variables. Depending on the size of the house some companies around here would be as high as 20-35,000.
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