We are purchasing an REO for our first attempt at the BRRR method. It is a major fixer upper and our budget is squeaky tight to make it work. The AC unit is undersized at 2.5 tons for a 1800 sq ft home. It needs to be cleaned and have a blower motor replaced for an estimated $250. We could replace the HVAC for $5000 and upgrade it to a properly sized 4 ton unit. I am not sure how much of a return replacing it will factor in to the appraisal. Is it worth pushing our budget to the max to replace, or will an appraiser just check the box that there is central heat/air?
The unit is undersized. A true load calculation would tell you the exact size needed, but the industry rule of thumb is 400ft ^ per ton. If you plan on having a tenant that can’t make rent, because the electric bill is through the roof during the summer, or calling constantly about a hot house, just clean it and replace the motor.
If you opt for the actual problem fix, make sure the line-set is replaced, and properly sized, for the new system.... FYI, new back splash is pretty, but occupant comfort will be worth its weight in gold, when you’re not receiving calls on a Sunday about the AC.
@Brandice Walters I would replace. I have had an appraiser ask me how old hvac, roof, appliance etc.. are in the past. Not sure it will bump your appraisal by 5k but it would probably save some service calls.
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