Morning BiggerPockets world.
I am currently on the first R and trying to plan my renovation in a way that maximizes my appraisal ( as expected)...
I have the opportunity to save about a grand on my rehab by having a used HVAC system installed. It is a 7 yr old Lennox system and the new option for a grand more would be a GMC unit. So my question to anybody out there is how much weight would a new HVAC have on the appraisal vs a used HVAC? I personally feel that the Lennox still has a better long term usage than a new GMC but as I said, right now the main goal is maximized appraisal price.
@Jesse Mitchell for the most part mechanicals have little affect on the market value. To increase value focus on Kitchens and baths. Paint and flooring and cosmetics. Appraisers are not much different then anyone else and if it looks nice it will appraise for higher. Also if its a rental property the income approach will help also so get your rents as high as you can before an appraiser comes out.
I think Alex Deacon has it right, if you are just looking for the appraisal. If you are going to hold the property as a rental, I think I would go with the new unit instead of the used HVAC. I can't tell you how many times in my life I have gone the cheaper route, on cars and houses, only to have to come back in six months or a year and having to pay again to "do it right" and replace that used part with the new one. (I'm a slow learner.)
Another consideration, talk to your HVAC person, (maybe two or three) and ask about how long new systems are supposed to last. I have been told that newer HVAC systems have a built in obsolescence that will make them die much sooner, and need to be replaced much sooner than older units. That used Lennox system may only have another year or two left in it. Just something to consider.
The biggest issue is the deal itself. If you paid too much for the property, and your rehab costs aren't in line, then you're in the property too high, and (even with a good appraisal), you won't be in a good cash/leverage position. $1K for mechanicals is not a big enough swing to make a difference...just make sure you have LOTS of room in your deal for surprises.