Convert boiler system to HVAC?

Question

Hi,

I am closing on a rowhome in Baltimore (Belair-Edison) that I am planning on renting out after the rehab is done.

The main question is what to do with the heating and cooling system:

- Option 1: Service the current boiler (20 years old) = ~$200

- Option 2: Upgrade to a new boiler = ~$2,500

- Option 3: Duct the property and get a new HVAC system = ~$7,000

With a new HVAC, I may get a little extra rent every month (~$50), but I believe the biggest difference will be in resale value, if I ever want to sell the property. Since I am planning on holding this property, I am not sure whether it makes sense to upgrade or to keep the existing boiler.

Thanks for your input!

Scott W. · Answer

what is your competition like? if they all have ac, do it.  you will also get more of a tenant pool if even they don't have AC.

Roy N. · Answer

@David Fernandez

Technically your boiler is an HVAC system (heating), but I gather you are contemplating replacing the hydronic heat with forced air.

If the property is in an environment where there is a significant cooling season, then the extra cost of switching to a central air handler (i.e. heat pump w/ ancillary gas for additional heat), removing the radiators and lines and installing ductwork may make longterm sense.

If there is not a significant cooling season, then it would be far more economical to replace your old boiler with a new high-efficiency condensing gas boiler (~95% efficient).   For air conditioning in this scenario, you could install a ductless heat pump if there is sufficient demand.

Regardless of your choice for heating system, you will get your best bang for your energy efficiency buck by improving the building envelope (air sealing, additional insulation), which may necessitate the addition of a ERV/HRV to maintain air quality in a tighter building ... but it may also allow you to use a smaller boiler/furnace to condition the building.