New to Real Estate · Chadds Ford, PA · Member since 2021 · 69 posts · 29 votes
Need some collective advice/recommendations. Appreciate any and all help!
Closed on 5 unit house with efficiency/1BR (7 occupants) last week. Currently all units are ~$50-75 below market in the zip code with water, hot water, gas heat/cooking included.
Monthly gas is ~$300/month year round (higher in Winter of course, etc) and the current gas boiler/heater is 20 years old and the longest tenured tenant told me that it was on recently after a circuit breaker trip and it had to be turned off manually at the unit. So, I am thinking the boiler is nearing the end of its life.
Should I replace the gas boiler vs installing mini-splits in all units since the utility costs would go back to the tenants (they pay electricity) and I may be able to charge more since the units would have AC too in addition to heat (Philly is no longer that cold in the winter).
If ROI is within 5 years, then I am thinking to do it.