Replace roof and HVAC?

[Dan Frehmeyer]

I am currently rehabbing my primary at the moment with plans to rent out this fall. I am doing mostly cosmetic fixes to a SFH currently.

I am looking for thoughts on whether I should be proactive with replacing a 20yr+ old roof (missing shingles, multiple layers, looks terrible) and a 25yr+ old hvac. The water heater was replaced a few months ago.

I have access to very cheap money so my thought is to be proactive with those major expenses before I turn it into a rental. The property will still cash flow with the extra cost of these expenses. Additionally, the house will likely appraise very favorably after as well with a cash out refi a big possibility

Thoughts?

[Melanie P.]

Yes to the roof, yes to using one of the roofer insurance adjusters help you with the claim. We did 18 roofs this way before. Our premiums did go up but it was a half-million dollar claim. In our case we did have recent damage from severe weather but with PLENTY of wear and tear. As stated before do not sign a a contract with any of the roofers until the claim has been approved, you know what you're working with dollar wise and have some competing quotes. You can sign an agreement to use the roofer-adjuster provided their cost does not exceed your best price plus 10% of the claim payout (i.e. typical insurance adjuster rates). Once they get the claim paid a lot of these companies model is to fleece you on the roof.

I would not do the HVAC until it is totally dead. Totally dead to me means we've recharged it and it loses the recharge in the same season. Until that happens topping it up at the start of each year will add another 3-5 years life to it from when you first learn there's an issue.