Replacing furnace for a flip- 80% or 95% for a $1000 difference?

Replacing furnace for a flip- 80% or 95% for a $1000 difference?

Rental Property Investor · San Clemente, CA · Member since 2019 · 160 posts · 34 votes

In your flips, do you go with the less expensive (but less efficient) furnace or spend the extra $1,000 for the highest efficiency furnace?

Flipping in Indiana where it can get very cold.

Wondering from a resale perspective what the ROI would be for one over the other?

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Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
7y

@Thuy Pham-Satrappe. I doubt it makes much of a difference for resale value. The buyer is just going to look at it as a new furnace, they probably won’t care which type of new furnace it is

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  • Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    7y

    @Thuy Pham-Satrappe. I doubt it makes much of a difference for resale value. The buyer is just going to look at it as a new furnace, they probably won’t care which type of new furnace it is

  • HVAC Tech · Fort Wayne, IN · Member since 2015 · 423 posts · 223 votes
    7y

    @Thuy Pham-Satrappe @Caleb Heimsoth has a good point, a new furnace is a new furnace. Usually flippers just re install the furnace efficiency the house is set up for.It can be just as expensive installing an 80% furnace if your taking out a hi eff furnace. You would have to go through the trouble running a metal flue, when you already have PVC right there. Short answer, if the house had to 80% if you're trying. Save money just put at 80% if it has a high efficient, replace with a high eff.

  • Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
    7y

    @Thuy Pham-Satrappe In my experience rehabbing properties in a cold weather climate, paying more for a high efficiency new furnace will not translate into selling the property for more money. 

    The fact that in general the furnace is new will though. Just do the 80% efficient option and save the $1000. There will be something else that comes up where that $1000 can be used I am sure. 

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