Tough Decisions on Capex
Hello BP Community. I'd love to get your oppinion. One of my rentals (in the Tampa area) recently had a compressor go out on the AC unit. I've owned this property for ten years, it was formerly my personal residence but has been a rental for about 2 years now. The AC unit is around 13 years old. I also need to replace the pool pump at this particular property as its around the same age and is on its last leg.
To fix the compressor (replace the compressor) it was $2,200, to replace the whole AC system is $5,700. I have the cash reserves to replace the whole thing (thankfully) but I'm curious to know what others think.
Additional background, I have to replace another AC unit on my primary residence this year also so I'd like to be in a position to quote two units and get a discount. The rental is in a class A neighborhood and brings in a pretty penny on rent, the tenant always pays on time and I intend on keeping this property long term.
So, would you repair and be in a better position to buy on your terms, or would you replace now?
Thanks for your opinions.