Investor · Charlotte, NC · Member since 2017 · 321 posts · 157 votes
I just found out the AC unit needs to be replaced. The unit is 30 years old prior to the tenant being evicted it seem to work good. I got a quote from the ONE HOUR ac contractor and he said it'll cost 6k-8k to replace the Air handler, heat pump and entire wiring. This Cap EX is completely wiping out 1 yr of CF. What can I do ? Any suggestions \.
An AC system is made up of parts - outside compressor, interior air handler/blower, etc. I would find out what "part" broke and see if you can't limit the replacement to that part of the system (for now).
@Isiah Ferguson it easily has the capacity, you will just need to keep the doors open to get the airflow to each room
Keep in mind, this is a low end rental in a D/C- area. I think the Ductless splits would be perfect, especially the unit being so small. I don't mine doing window units but Ductless would look much better. At lease it has a more modern feel too. Let hope this work out great. New investors problem/ Mom & pops issues. Wish me luck.
If you don't mind window units and they wont affect your rent, then that's how I'd go. You can buy 3 brand new window units for 500 bucks. I have several homes with window units and they don't change the rent at all. I make them look nice by framing around the inside with 1x2, putting rigid foam insulation in and covering with bead board, caulk and paint and they look great and eliminate the air leakage from the cheap accordion fillers. 500 bucks and an hours work versus 6-8k. No brainer.
That sounds expensive if it is a smaller building. Get more quotes.
It's. 2/1 900sq
3 window units from Home Depot.
ANY great ideas for Heat. The winter time is approaching.
Do you have natural gas? If so, a small floor stove or fireplace. Or an electric fireplace. We also supply space heaters for the bedrooms on really cold days
Pricing seems on the high side. As mentioned if this is a franchise you have salesmen, marketing costs that mark up the price. Try and find a local mom and pop shop who doesn't have all this overhead and I bet you can shave at least 1 to 2k off the price...
For any kind of CapeX I ALWAYS get at least 3 estimates...
Sure it stinks to have to lay out this money all at once, hopefully you have a credit card you can finance at least a portion of it so you don't leave yourself with no cash reserves....
30 years is fantastic to get out of a Central AC system... There is definitely no point in trying to replace just compressor or just air handler Etc.... Probably runs on the old Freon anyway which cost a fortune. The newer stuff 410A is much cheaper and more readily available.
I agree with @Michael Hayworth. You don't need more than a 2-ton system for something of that size and you need to call at least three local HVAC companies that are not franchises for price quotes. You will see that their prices are much more reasonable.
You also need to go with a new system so that you have a warranty and eliminate the worry of a used system. Lastly, get a preventive maintenance policy and ask the company that you go with to give you a discount since you're purchasing a new unit from them. I'm sure they would be willing to cut you a break.
900 sq ft I would think you can go 3 or 4 ton, dont see why it would be $6k that seems high.
I had TWO units installed 2 years ago (5 ton 1st floor 2k sq ft and 2 ton for 2nd floor) and it was $6k total for both including install.
for good comparison on the unit prices themselves http://acunitsdirect.com/ remember as with anything an installer will mark up those prices thats why you get higher quotes
Get more quotes for sure, I converted a duplex from baseboard heat to HVAC and for the whole thing it was 3.5K, granted that didn't include the two units or handlers, but with the units all of it together was like 6500 if I remember correctly. Even if it was 8k all together, thats 4k for you to do one based off how much I paid. Ask around and get plenty of quotes.
However your ducting is 30 years old and likely done. For 900' I would not replace the ducting. I would go mini split. They have been popular in Europe a long time. They would have no issues with 900' (I have a 1400' unit on minisplit as it had no attic). So far the mini splits outlast the window style AC which do not last very long (I am buying better units than I used to but the old window units did not last 5 years). The mini splits look nicer. The outside part of unit is also small. Saving new duct makes labor less.
The one thing is if their filters are not cleaned when they should be the cost to clean when disassembly is needed is high so make sure they are examined annually.
I hope to add mini splits to two of my units in the next year (from no ac and no attic).
That's a great question. What I would recommend for you to do is to always include a 15-20% for Capex when underwriting your deal. These numbers may vary a little depending on the area and type of product you're buying/building.
I would also consider negotiating with the seller while under contract to either adjust the price or provide some sort of credit that you'd feel comfortable with!
Let me know if I can be of assistance in any way!
That sounds expensive if it is a smaller building. Get more quotes.
It's. 2/1 900sq
I have a current quote for $5,100 on a 1100 square foot house 3.5ton in Dallas. and that is installing everything from scratch ductwork, etc.. Are you sure you really need a 4 ton unit? I cant imagine needing that big of a unit.
Feel free to get some more quotes, but that doesn't sound too unreasonable. I recently got two quotes (one at $8k and one at $8.6k) to replace my air handler, condenser unit, and all the ductwork on my central AC system in my home.
It's just something you have to factor into your expenses. Like how you may set aside $X amount every month for CapEx, some months you may not have any costs at all, other months you may run into a big one. The good news is the new unit should last you a couple of decades.
Absolutely. Should I get a brand new unit or should I get something used. It is a rental. I'm thinking brand new because of the warranties etc
You will want a new unit. The older units will be a different type of Freon (likely R22). Its not being made anymore and the cost is beginning to skyrocket. I had the same installer refill two separate systems in the same day, he charged my 2x's as much for the older unit because his cost of Freon was higher.
We have found we just have to put aside 10-20% of our rental income into a separate savings account knowing that we will have big ticket items like this go. And for some reason it DOES seem like AC units, refrigerators etc all seem to go bad right at the time a tenant moves out.
Anyhow, I feel for you. Hang in there. the rental game is a marathon imo.
One Hour Air is a franchise. They have a marketing budget, franchise fees, and generally higher expenses. You want an independent, investor friendly HVAC tech.
"Investor friendly" generally means a company that specializes in working for construction companies, remodelers, investors and such. They typically have little overhead, don't do much marketing, show up in old pickups instead of late-model vans, and the techs may have limited English. That stuff is important to homeowners paying retail, but a smart investor will only care if the work is done well.
General rule for AC is 1 ton per 500sf of living space. So you need a basic 2-ton system. I can get those installed for under $3K in my area using my regular HVAC tech. His English is a little rough - he mainly speaks redneck - but his prices are good and quality of work is excellent. Ask other investors in your local market for recommendations to someone like that.
Agreed, to speak to my AC guy, I have to call my contractor (who is a good friend of mine), and he calls my AC guy and tells him what we are wanting to do and gets us a quote. Because our AC guy speaks no English.
But he is a nice guy. Does good work and gives good prices.
I'm new to property investing but I had a thought so I wanted to jump in and hear peoples thoughts. For this issue, I agree that based on the size of the property, window units should be sufficient and a whole lot cheaper.
But is there any risk of the property not renting as well if surrounding competition is mainly A/C Units but his is a window unit?
Would it work if he financed the cost of the new A/C unit, raise the rent up to help cover the monthly payments (as long as it isn't priced too high above the surrounding competition), and advertise it as a brand new A/C unit when trying to rent it out?
$6000 FOR 900 SQ FEET..sounds pricey in NC? i think you can get away with 2.5 ton no? i had mine done for $3800 in south florida 3.5 ton $1500 sq feet...mind you where they can charge astronimical priceswell its hot and you need it......total replacement air handler new ac even insulation. but i new a guy who was a family friend and gave me a good deal..id say shop around and get more quotes
My father used to do residential AC installs on the side a few years ago. It always amazed his customers how much they saved by going with a smaller entity. (He was licensed in all major brands and had 15 years of experience) I would shop around at smaller providers and see if you could catch a break on that price.
@Isiah Ferguson , sorry, I am late to the game here, but I agree with others that is definitely expensive. I just sent you a message for a recommendation in case you are still looking for other quotes.
Cheapest bid is NEVER in your best interest. Goodman equipment is the bottom of the barrel. Get a few quotes, but don't cheap out or you'll do this again soon. Especially with AC systems, it has to be installed using Nitrogen during burn in of the lineset, followed by using a micron gauge to ensure proper vacuum before the freon is released into the system. The cheapest bid will rarely, if ever, do this.
I see properties with old hvac going for top dollar all the time and shake my head..this is what happens!