HVAC, repair or replace for Flip

[Greg Loomis]

Hi, guys!

I am in the process of rehabbing a property in Central VA and I'm torn on rehabbing or replacing an old HVAC (15 - 20 years old). We got it to work but the unit is an eye sore.

Does anyone have any thoughts on the ROI behind replacing an old HVAC?

Thank you!

Greg

[Evan Polaski]

@Greg Loomis finishes sell properties, mechanicals kill deals.  I say replace it.  It is at the end of the useful life.  If you are an entry level price point, buyers will walk or want a full credit for it.  If you in a high price point, buyers will think you are cutting corners elsewhere in the project.

15-20 years is the useful life on HVAC.  Thankfully, I am not trying to buy a house in this market and know there are a lot of desperate buyers, but if I saw an hold HVAC (which is a high cost item) in an otherwise fully remodeled house, I would assume you also patched over plumbing, electric, foundation, etc issues. 

Additionally, if you are trying to build a flipping business and plan on doing many in your market, reputations spread within realtors.