Greenwood, IN · Member since 2018 · 13 posts · 3 votes
I'm interested in a duplex in my area, but there is no central air system installed in the home, and the heat is baseboard electric. My initial reaction is to be concerned that window A/C units may not be satisfactory for the long term holding of this property, but I have no idea how much money it would cost to install a new system down the road. Right now the tenants in the home pay their own electric, which covers the costs of running the window units. The numbers work well for this property, but I'm wondering if anyone has any experience with properties that have similar air conditioning and heating systems, and if any issues have come out of it.
Investor · Broomfield, CO · Member since 2016 · 1 post · 1 vote
8y
I have a duplex EXACTLY as you mention - baseboard heat and no central AC. It does have window units (which I hate and are now becoming unsightly - I'm picky...) but I'm considering either an AC in the attic (this property also has a full basement) or a wall unit. In my market, this property has been continuously rented now for over 4 years, with one long term tenant on one side and 2 tenants thus far on the other. The prior owners are friends and this property has never been vacant or hard to rent. There are ways to install AC depending on your construction, so unless you plan to put $0 into the property (or cannot afford to upgrade to an AC unit) and are worried about renting it as-is I would say go for it. I can tell you I'd buy another duplex like this in a heartbeat if I could get the same deal as I did 4 years ago!
I lived in Singapore for 2 years and homes there do not have central AC. 365 days per year are over 85 degrees F and 90%+ humidity. AC is a must to survive. Mainly concrete construction so there are no ducts throughout the houses. Each room in my house had its own wall installed AC unit with compressors mounted outside. And this was EVERY house or apartment I ever visited while I was there. These same types of AC units are sold here in the US. Good luck with your place!
Greenwood, IN · Member since 2018 · 13 posts · 3 votes
8y
I appreciate everyone's feedback, guidance, and personal experiences. Sounds like this setup is not as uncommon as I thought. I'll definitely explore what other properties have and how the rents compare in this area.
Real Estate Broker · Salt Lake City & Oklahoma City · Member since 2018 · 3k+ posts · 2k+ votes
8y
@Sean Murphy this is a common find in my area and my clients snatch them up if the numbers work in the current situation. We often find that if the previous owner hasn't updated to CHA (central heating and air) then they probably haven't done other upgrades and we can usually find ways to add enough value to bump the rent up a quality-tier or two.
There is a tremendous amount of variability in what it would cost to install CHA and the factors include (but not limited to) how large each side it and how easy the duct-work will be. We've seen this cost $17,000 for a duplex with 2-2bed/1bath units totaling 2,400 square feet and substantially less for other units. I am closing on a much larger duplex that will require a LOT more than 17k to convert to CHA because it is 2 stories, among other complicating factors.
So . . .what the conversion price will be . . . it depends, but if the numbers work as is, there's a good chance that the numbers will work with CHA.
Investor · Tri State Area · Member since 2018 · 107 posts · 24 votes
8y
I think anything is worth the purchase if the number is right. Contact a few HVAC people to gauge the cost and make sure that is reflected in your purchase price, Along with what that extra utility cost would be. If it makes sense it makes sense.
Real Estate Broker · Orlando, FL · Member since 2013 · 57 posts · 15 votes
8y
Is it typical in the area to use window units? In Fl. this would never fly you'd need central air or you might actually kill a tenant lol.
Get some quotes on installing a system. The system installs aren't that expensive but depending on the attic space and if you need to add ducts and all that fun stuff will definitely add to the costs.
Real Estate Agent · Pittsburgh, PA · Member since 2015 · 1k+ posts · 846 votes
8y
@Sean Murphy most of my units don't have central air BUT that's similar to the market. Many of the buildings have radiant heat so no ductwork. Most landlords haven't updated all the way yet. I think that you look at what all the other properties are offering and go from there.
I provide window units to tenants. Tenants ask if there is A/C and I tell them we provide window units, but no Central A/C. Most don't care some do and move on, but overall I still get tenants.
I'm in Pittsburgh though and we have maybe 2 months a year where A/C is relevant.
New Orleans, LA · Member since 2017 · 18 posts · 8 votes
8y
I know you are in a different market than I am, but I just purchased a duplex in New Orleans with window units. At the moment, I am only working on updating plumbing and electrical, as well as removing the carpet and refinishing the hardwood floors in the rental side. I'm adding a dishwasher to both units and a washer/dryer to the rental (the owner side already has them). That alone gave me an appraisal value $92k ABOVE purchase price.
I love window units because you have more control over your utility bills. There is always more value for central air, but figure out if the cost to install outweighs your return. Here in New Orleans, window units are very common, so they do not affect rental ability.
Investor · Richmond, VA · Member since 2016 · 1k+ posts · 2k+ votes
8y
Check zillow/hotpads/CL/etc, and determine what the rates are for duplex units with and without central air. It will be a lot cheaper/easier on you to just require them to have their own window units, but the quality of tenant will likely be lower, as will rent! To install duct work, it will be at least $5K/side, so $10K... so you just gotta determine if it's worth it, and if it's needed or not? If you're in C/D area, the most important factor may just be cheap rent and nice a place!
Always think about your potential tenant-- and what they want most, and how you can give it to them?
Brookfield, WI · Member since 2016 · 191 posts · 108 votes
8y
None of the duplexes in my area have central air. Window units are the norm. Multi-zone mini-splits might be a good option if you are looking to put in a long term, maintenance free (relative to window units in and out each winter/spring) and could conceivable add value, but they aren't cheap. The window units are the responsibility of the tenants, so there's that.
Cleveland, OH · Member since 2018 · 133 posts · 59 votes
8y
I agree with the fact that your market has a lot to do with it. In Cleveland window A/C units are pretty standard for most MF properties. Unless it's an A class building or a community with central air as an amenity most of the buildings here you're responsible for your own air. In a market like Texas, Florida or Arizona I can imagine it's pretty standard.
Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
8y
I actually love window units. I had a small quadplex that just had window units. Cost $400/unit for heat and cool so I could replace the entire quadplex for 1600. Imagine how much that would cost for central air.
Investor · New Orleans, LA · Member since 2014 · 1k+ posts · 944 votes
8y
I own four properties in New Orleans, 3 of them duplexes. It is HOT here. Unless you are maybe talking about more high dollar A neighborhoods, window units are really common here. Two of my duplexes are only window units with both a/c and heat. I live in one of those units. I typically put one unit in the living room and one in each bedroom. One of them is HVAC on both sides. It was my first "rent and rehab" and I chose to install HVAC. If I had to do it over, I would have put window units in. It's a decent area, but lower end home prices and rents. It was not worth the expense and aggravation.
My only SFH had central when I bought it, but the a/c portion completely died within 18 months and after multiple repairs. The central heat still works. I told the tenant I was not replacing the HVAC and would put in window units. I gave her the option to break the lease with no penalty and leave, if she wished. She chose to stay. I bought used a/c only window units for about $75-$100 each. And one new window unit that had both heat and a/c for the living room.
One warning I will give you because I got nailed on this with a S8 inspection on that SFH. If there is no other egress to the outside than the window that has that unit in it, it could potentially turn that room into a death trap in a fire. I felt bad I had never even thought of that and was glad the inspector said something. Lots of unlikely with that. But it could happen. I ended up having to put portable a/c's into two of the bedrooms instead. Not cheap and you can rarely find them used, but still a lot cheaper than a new HVAC. Technically, the portable a/c's still vent out the window, but that part can be pulled out in seconds in the case of a fire.
Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
8y
I have a duplex with no ac and a SFH with no ac . The tenants supply their own window units . I have yet had a " No Air conditioning " call from either one
Real Estate Investor · Sacramento, CA · Member since 2016 · 96 posts · 26 votes
8y
I would get a bid and just negotiate that cost into your buy price. If you must have central install and the current price doesn't work, then you may need to reconsider the deal. I have a duplex with window AC and wall unit heat, surrounding comps are mixed with central and wall units. Sacramento rental market is hot right now and people are renting regardless but I could imagine down the line would be good.
Investor · Los Angeles, CA · Member since 2014 · 285 posts · 142 votes
8y
I just put in ductless mini-splits and love them. Paid $2500 for two independently operating systems. Everybody uses these in Asia. These are some of the advantages:
-- cheaper than central A/C and no duct work required
-- Has heating capability (but probably not very efficient ... I live in Cali, so I don't care)
-- Super quiet
-- You don't have to cover up a window
-- You don't have to cool the entire house if you just want to cool down a bedroom
-- Some of them have swiveling blades, which I think are just awesome
-- Lower BTU ones can run on 110v
The big name brand is Daikin. But there are a many cheaper brands out there from China
San Francisco, CA · Member since 2015 · 60 posts · 12 votes
8y
I bought a fourplex in Sacramento area, each unit is a 2bd/1ba 958 sq.feet. Only living room has a wall AC and a wall heater. I decided to remodel each unit and put mini-split systems in each room. I bought 12 heads/compressors, paid $600 per 12,000 BTU units. The contractor that was going to install it, said I don't need a permit, because he was going to plug them into the wall outlets in each room. Well... he turned out to be a dumb idiot, because it turned out that each room had all wall plugs wired together to a 15 amp breaker. That means if you turn on an AC in a room and then turn on something else in that room, you might burn down the house.
I had to get the electrical permit - $800 and do a proper electrical wiring on the outside of the house from the main panel, another $6200. Then get another permit for air conditioning installation for $700 and the installation cost of $550 per room + materials. Overall it became a $24K adventure...
It looks and works great, the tenants love it and I am sure I'll get the money back at sale if the appreciation keeps at the current level. If you ask me if I would buy another property without AC, I would say no way!
Investor · Green River, WY · Member since 2017 · 122 posts · 59 votes
8y
If you're not going to have A/C, make sure your windows and screens are in good order (meaning they open and close easily). Your tenants will appreciate that.
Rental Property Investor · Washington, DC · Member since 2015 · 88 posts · 45 votes
8y
It really depends on the market. If you're renting a duplex with no central air next door to someone with central air, it will make it less appealing. Personally, if it's in a A, B and some C neighborhoods, I install central AC in mine.
Rental Property Investor · Johnstown, PA · Member since 2017 · 71 posts · 42 votes
8y
As others have said, it really depends on your market. Here in PA, it's not unusual to have a home without one. Our triplex does not have central air and only one unit is provided a wall unit. The others have the ability to use screen doors or just leave their windows open. They could also install their own units, but that would depend on how your utilities are split in your property. If they're paying for their own electricity, go for it. I'd reconsider if you're footing the utility bill.
I'm interested in a duplex in my area, but there is no central air system installed in the home, and the heat is baseboard electric. My initial reaction is to be concerned that window A/C units may not be satisfactory for the long term holding of this property, but I have no idea how much money it would cost to install a new system down the road. Right now the tenants in the home pay their own electric, which covers the costs of running the window units. The numbers work well for this property, but I'm wondering if anyone has any experience with properties that have similar air conditioning and heating systems, and if any issues have come out of it.
I appreciate everyone's help!
GEt bids on installing units, might even just look at what it would take to put in central heating/AC units. (guessing 4-5K/Unit).
If your market is ok with window units, and if the numbers work, I would just buy the property and look at adding AC units as an upgrade to increase rents over time.
Specialist · San Clemente, CA · Member since 2014 · 50 posts · 75 votes
8y
Sean: I had a similar issue with a duplex I have in San Clemente California and tried two different solutions; one for the front 1-bedroom unit and one for the back 2 bedroom unit. In the front unit I installed through-wall air conditioners; one for the living room and one for the bedroom. Total cost was about $600 each for the air conditioners and another $500 each for the through-wall kit, bringing 220 v power to the unit and installing through the wall. Total cost $2,200. For the 2 bedroom unit I installed central air conditioning / heat and that total cost was about $5k. If I had to do it over again, I would have probably just installed through-wall air conditioners in the 2bedroom as well. It would have been about $1,800 less. The through wall install is much more secure and looks more permanent than a window install. The mini-split suggested by another member is an interesting idea, but I think the cost would probably be somewhere between the two methods I used. In Indiana, the cost of any of these would probably be slightly less.