Wisdom: Replace a furnace or upgrade to central air?

Wisdom: Replace a furnace or upgrade to central air?

Sioux Falls, SD · Member since 2022 · 2 posts · 2 votes

Hi guys, I'm new to BiggerPockets. I just bought my first property in May 2022. It's a 4-plex that I am house-hacking. Each unit has its own furnace and two window AC units. One of the furnaces is in the process of dying and needing to be replaced. Here's the question: Should I just replace the furnace and keep the expenses to $3500-4000? Or is it wiser/more cost effective to upgrade to central air at the same time? I'm guessing the total bill will come out to $11,000. I plan to hold the property for 30 years since it's in a great location. Is it worth the upgrade? Love to hear what you think!

2Reply
33 views

Most Popular Reply

Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
3y

What is your competition offering and how much more are they getting for Central AC?

What do you want to own for 30 years (4) furnaces with A/C built in or (4) furnaces with window A/C.

In some class C areas of Texas Window A/C is the way to go, in some areas of the Midwest it will fly the friendly sky's of Class C and Class B in the bedrooms.

Do you have the Amperage  to handle 4 new furnace AC units at the drops and do you have space in the breaker box for any needed new breakers (talk to an electrician).

The outdoor portion of the A/C will probably run on 240V, and will require certain special wiring done by an electrician.

Furnace A/C is NICE!!!, but like everything else in this business it comes down to a business decision.

If you don't want to bite into your cash, maybe look into a fixup loan for the funds needed.

Good Luck!

See this reply in the discussion

6 Replies

Jump to latestLatest
  • Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
    3y

    What is your competition offering and how much more are they getting for Central AC?

    What do you want to own for 30 years (4) furnaces with A/C built in or (4) furnaces with window A/C.

    In some class C areas of Texas Window A/C is the way to go, in some areas of the Midwest it will fly the friendly sky's of Class C and Class B in the bedrooms.

    Do you have the Amperage  to handle 4 new furnace AC units at the drops and do you have space in the breaker box for any needed new breakers (talk to an electrician).

    The outdoor portion of the A/C will probably run on 240V, and will require certain special wiring done by an electrician.

    Furnace A/C is NICE!!!, but like everything else in this business it comes down to a business decision.

    If you don't want to bite into your cash, maybe look into a fixup loan for the funds needed.

    Good Luck!

  • Member since 2021 · 31 posts · 23 votes
    3y

    is there existing duct work throughout the house for the central air to plug into? 

    Look into a Heat Pump, they are very efficient. 

  • Rental Property Investor · Russellville, AR · Member since 2014 · 684 posts · 509 votes
    3y

    Others have pointed out things like existing ducting and electrical requirements.  Also, consider what your competition may offer and what your area will give you regarding increased rents.  You don't want to overdo your building.

  • Sioux Falls, SD · Member since 2022 · 2 posts · 2 votes
    3y
    Quote from @Evan B.:

    is there existing duct work throughout the house for the central air to plug into? 

    Look into a Heat Pump, they are very efficient. 


     Each unit has its own existing duct work. It's flex duct. The companies giving me quotes have been saying that they would recommend keeping the flex duct because performance won't change much since people aren't stepping on the ducts.

    Would you need a heat pump for each unit then? Good call on the heat pump. I'll check it out.

  • Jaron WallingPro Member
    Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
    3y

    What about mini split heat pump systems like mention above?

    You'll need a mini split system setup for each unit but I doubt it's $11k because it's much smaller. In some cases installers only need to drill two holes, run electrical, and everything else mounts to the wall. Definitely check it out! This website explains how they work. 

     https://www.fujitsugeneral.com/us/residential/what-is-a-mini-split.html#:~:text=Mini%2Dsplits%20are%20heating%20and,(s)%20(evaporator).

  • Alicia MarksPro Member
    Fort Worth, TX · Member since 2020 · 1k+ posts · 2k+ votes
    3y

    If it's a 4 plex you'll need to separate out each system, much more than $11k. I paid about $15k to split a duplex, but it did not have ducting. Start separating out as much as possible now so you can pass on the costs to the tenants. I'm also not sure how you plan to separate temps between units currently.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.