Rental Property Uses Firewood to Heat

[Russell Woodbridge]

I am looking at a property that has a heating system for a small house and a duplex that uses firewood. The system is fairly new and apparently works well. In the past, one of the tenants got wood from the property (1.5 acres) and put a log in each day during the winter in North Carolina. That tenant is gone. I am thinking about moving on from the deal since I do not want to supply firewood but the cash flow on the place is amazing. Any advice or have you owned SFR / Duplex with firewood as the heat? Pro or cons? Thank you!

[JD Martin]

Easy answer: put in a new heating system. If it has amazing cash flow, a new heat pump system installed even with ductwork is going to cost you under 10k in NC (I'm in TN) and factored out over time is virtually nothing. Then you don't have to worry about anyone providing firewood. If I came upon an amazing property, but for the heating system, I'd just replace that aspect just like I'd do if it was an amazing property and needed a new roof or new kitchen.