central air?

12 Replies

Any thoughts on whether or not it's worth the cost of installing central air for roi I can get a unit for 1100 and we are in northern indiana? purchase price 31k rehab cost 15 to 20k comp selling for 100-130 thanks! 

I had/have a lot of these "should I do" questions.  The answer is almost always "what is my competition doing?", "what are my prospects seeing at other houses".

Central Air is one that I have struggled with the decision with a few times here (Southern NY). Both times the house's target ARV was about 30% higher than the median - right on the cusp of when buyers start to expect central AC.

Unfortunately, my cost of installing AC was much higher than yours.. in the 6-8k range, and would not have bumped the ARV much more than a couple thousand. I didn't install and kept my fingers crossed (and both houses went on the market in the Summer). Both turned out OK. Both sold and not one person looking at the houses said anything (to me) about the lack of AC.

If $1100 is truly your cost to install (not just the cost of the parts) I'd do it if I were in your position. Seems that central adds a lot more value (higher ARV, and quicker sale time) than $1100.

Originally posted by @Casey Young :

Any thoughts on whether or not it's worth the cost of installing central air for roi I can get a unit for 1100 and we are in northern indiana? purchase price 31k rehab cost 15 to 20k comp selling for 100-130 thanks! 

 As others have said look at your comps, particularly the top end, and see if other houses have it.  If none do then I wouldn't do it.  If the ones that are getting top dollar have central then you should probably install it. I also would look more into the cost, I highly doubt you can get it installed for $1,100.  That's right around the supply house price here for a low end 2 ton system and that's without a line set, electrical, installation, and any other materials.    

Worth it. What person buying a house is going to want it without air conditioning?

Does this house have forced air heat or radiators? If the latter, you have to get ductwork into place and that adds to the cost. 

thank you for all the replies. There is existing ductwork already this helps. Also I forgot to add I will be doing the installation while I am installing a new HE furnace this is a new ducane 3 ton system that I am buying from a wholesaler in Elkhart, IN there prices are really good compared to anyone else I've seen. so I am looking at this as minimal investment for hopefully a bigger payoff I just am trying not to make a newbie mistake by dumping way to much money into a house that I wont get a good return on. Comps are hard to find with this place due to it being rural and there's not a lot out there. I decided to go forward with it. Does anyone else do all there own work and how do they factor there work into the equation of ROI. I work cheap so... can I expect more profit? because im not sharing this with a contractor? whats everyones thoughts on this?

I guess one advantage of being in the Dallas market is I don't have to lose sleep over this question,,without central A/C no one would touch buying or renting a house

Originally posted by @Casey Young :

Does anyone else do all there own work and how do they factor there work into the equation of ROI. I work cheap so... can I expect more profit? because im not sharing this with a contractor? whats everyones thoughts on this?

This is something that I came to terms with after my second house.  My job is to FIND HOUSES and manage the reno.  THAT pays A LOT more than swinging a hammer. 

I LIKE doing that work, but it's $30/hr pay and the project takes a LOT longer (holding cost). I finally weaned myself off doing the work. There is always little things to take care of after the crews have left.  I typically do that stuff... an hour here or there.   That helps maintain my addiction.

Originally posted by @Bob C. :
Originally posted by @Casey Young:

Does anyone else do all there own work and how do they factor there work into the equation of ROI. I work cheap so... can I expect more profit? because im not sharing this with a contractor? whats everyones thoughts on this?

This is something that I came to terms with after my second house.  My job is to FIND HOUSES and manage the reno.  THAT pays A LOT more than swinging a hammer. 

I LIKE doing that work, but it's $30/hr pay and the project takes a LOT longer (holding cost). I finally weaned myself off doing the work. There is always little things to take care of after the crews have left.  I typically do that stuff... an hour here or there.   That helps maintain my addiction.

I totally understand and hope to work towards that. This is my first flip so... .I have to prove to myself first that this works than I hope to go full steam ahead!  Thank you for the advice. 

I'm right there with Andy...it's like buying a car in Texas and having the A/C listed as an "accessory". Really? Central air isn't a luxury in Texas, it's a necessity of life. The only place you find window units here are in low end and war zone properties.

Originally posted by @Hattie Dizmond :

I'm right there with Andy...it's like buying a car in Texas and having the A/C listed as an "accessory". Really? Central air isn't a luxury in Texas, it's a necessity of life. The only place you find window units here are in low end and war zone properties.

 But what about heat?  ;->

Bob...unless you live in the Panhandle, you really wouldn't even have much to worry about in terms of pipes freezing inside. It's seldom below freezing for more than 24-hours here in the Dallas area. In a desparate situation you open the cabinets and leave the faucet dripping. No lake effect around here!!!

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