A/C Unit Died @ My Dallas Rental - What would you do?

A/C Unit Died @ My Dallas Rental - What would you do?

Vendor · San Diego, CA · Member since 2016 · 55 posts · 16 votes

It finally happened.  Just closed on my first property in Dallas and one month in - the A/C died.  Can't blame the inspector too much - he notated that the unit was 20 + years old but didn't actually run it because it was inspected in Winter.  Hoping for some insight on the best course of action.  

Option One:  Hire a local Dallas A/C company called Strike Force to replace 2 condensors, 2 coils (the property is a duplex and the front house units are just as old and it sounds like proactively replacing them is the right move).  They have quoted me $12,000. 

Option Two:   Buy the parts on Home Depot and find someone on Angie's list or HomeAdvisor to handle the install.  Should save at least $3,000 this way. 

Option 3:  Do Nothing.  Advertise the house as a Bikram Yoga studio and start raking in the big bucks.

If anyone has a quality A/C guy that you trust - please pass along their information : )

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Investor · Coppell, TX · Member since 2008 · 2k+ posts · 646 votes
8y

I tend to agree with what Amy said.  Getting several bids from local contractors, and using good materials from a manufacture that has a good record should be a little less and, since you will be spending good money, get a decent warranty.  One alternative would be to install some window units  and possibly lower the rent while you save up a reserve.  Another alternative would be to sale the unit in this seller's market to, hopefully, get your money back that had to be spent and go on down the road.  I'm sorry, but since you are in Dallas there should be many competitors that should help out to get your price lower.  I like the idea of replacing over repairing.  You would think I was born in Dallas over 61 years ago that I would have someone to recommend but it is so far typically rare that I do not have any recent experience that I just do not.  Just a side point and that it might be a little educational for long term investors, my father built us a house in Lake Highlands back in about 1961 for $26,500 for a 4 bedroom house and is now for sale at $610,000.  Best wishes!

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  • Investor · Houston, TX · Member since 2017 · 1k+ posts · 871 votes
    8y

    I could help you, brother, here in Houston.  Connect with some local flippers/landlords in the DFW area, somebody will have a good guy they can send your way.

    Maybe some part of the condensers can be saved or repaired?  

    One thought -- search for techs that do Goodman AC.  They are made here in Texas and they run a little less than the big brand names.

  • Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
    8y

    Where's the house in Dallas?  What part?

  • Vendor · San Diego, CA · Member since 2016 · 55 posts · 16 votes
    8y
    The house is located adjacent to lower Greenville. It's a smaller duplex
  • Investor · Malakoff, TX · Member since 2017 · 2k+ posts · 2k+ votes
    8y

    Get a couple other quotes from HVAC people.  I would use professionals, but think you can get for cheaper than that (unless there is something unusual about your job).

  • Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
    8y
    I would get multiple quotes. $6000 per unit seems a little high. Is there an advantage (cost savings) to replacing both at the same time? If one is working, why replace it? It could last 2,3,5 more years.
  • Vendor · San Diego, CA · Member since 2016 · 55 posts · 16 votes
    8y
    Definitely planning to get multiple quotes. Hoping someone had a reputable company that they could provide as a suggestion. The spot we chose has high reviews, but seems incredibly expensive.
  • Rental Property Investor · Plano, TX · Member since 2015 · 80 posts · 14 votes
    8y
    I’m in the same boat. AC in duplex in south FW just died. Any companies you guys can recommend to get some quotes?
  • Real Estate Agent/Property Management · Houston, TX · Member since 2014 · 1k+ posts · 827 votes
    8y

    $12000 just to replace the condensers and coils on two units? Sounds like there's some price-gouging going on. For that price you should be able to replace the entire system. 

    I replaced the inside unit at a 2BR 1200SF condo last year for something like $1200. It was a brand new Goodman unit. That didn't include the outside compressor, which was still operating normally.

  • Rental Property Investor · Edison, NJ · Member since 2016 · 753 posts · 565 votes
    8y
    I pick option 4. Get multiple quotes and pick a company with a fair price, availability, and some kind of warranty of their work.
  • Real Estate Agent · Dallas - Fort Worth, TX · Member since 2015 · 89 posts · 33 votes
    8y
    Do u know the HVAC unit rating? I just replaced a 3-ton unit inside furnace & outside condenser for $3800 ie whole HVAC unit PM me & I can share my HVAC guy contact info
  • Investor · Coppell, TX · Member since 2008 · 2k+ posts · 646 votes
    8y

    I tend to agree with what Amy said.  Getting several bids from local contractors, and using good materials from a manufacture that has a good record should be a little less and, since you will be spending good money, get a decent warranty.  One alternative would be to install some window units  and possibly lower the rent while you save up a reserve.  Another alternative would be to sale the unit in this seller's market to, hopefully, get your money back that had to be spent and go on down the road.  I'm sorry, but since you are in Dallas there should be many competitors that should help out to get your price lower.  I like the idea of replacing over repairing.  You would think I was born in Dallas over 61 years ago that I would have someone to recommend but it is so far typically rare that I do not have any recent experience that I just do not.  Just a side point and that it might be a little educational for long term investors, my father built us a house in Lake Highlands back in about 1961 for $26,500 for a 4 bedroom house and is now for sale at $610,000.  Best wishes!

  • Flipper/Rehabber · Las Vegas, NV · Member since 2015 · 6 posts · 4 votes
    8y
    I would suggest to get several quotes and use Goodman ac. It comes with 10 year warranty.
  • Real Estate Investor · Williamson County, TX · Member since 2011 · 1k+ posts · 961 votes
    8y
    Payne is the low end carrier and ameristar (I think thats it) is the low end trane/american standard. I believe the carrier and trane guys are not allowed to sell the lower lines...to get the most economical systems you have to screen by what line they sell. You could call the distributor or maybe use the payne or ameristar web page to get an installer.
  • Real Estate Investor · Austin, TX · Member since 2015 · 65 posts · 50 votes
    8y
    Shray Goel You might want to check and see if you got Home Warranty when you bought the duplex. Most TREC Contract includes a one year home warranty at seller’s expense unless you specifically op out or take cash instead of the insurance. If you do, put it to work. $12000 to replace 2 systems seem excessive unless you go for top of the line 16+ SEER 4+ tons system. Pick one with price vs value balance. Good luck.
  • Rental Property Investor · DFW, TX · Member since 2013 · 953 posts · 910 votes
    8y

    I use a company called Bon Air based in Grand Prairie. They are not the cheapest but they do good work. 

  • Greg H.Pro Member
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    Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
    8y

    The units themselves can be purchased for +-$2500.  I usually have no problem finding an installer for $1000 for a switch out 

  • Specialist · Los Angeles, CA · Member since 2016 · 61 posts · 32 votes
    8y

    Get multiple bids, make sure the scope of work and warranty are the same on all bids, and please, please, PLEASE, make sure they are changing out, or at least, flushing out the copper line set. An undersized line set will decrease efficiency and also shorten the life of the compressor. Also, make sure that the installing technician pulls a 500 micron vacuum on the system (using a digital vacuum gauge) to insure no refrigerant leaks. 

  • Dallas, TX · Member since 2016 · 1k+ posts · 745 votes
    8y

    You should be no more than 4,000-4,500 for a name brand (Rheem or Trane) AC unit.  You might be able to get it a little cheaper if you look around.

    My last two were something like 3,800 and 4,000.  For a complete replacement.

  • Member since 2018 · 3 posts · 1 vote
    8y

    A Mini-Split Ductless Heat Pump is one of the most-efficient means of keeping your home or business comfortable throughout all seasons of the year. The system consists of an outdoor compressor unit which is connected with copper pipes to an indoor unit that distributes the heated or cooled air into the home or building.

    Search Mini Split Warehouse on the web, they sell you any unit and they send it to your house, they can also take care of getting you an installer.

  • Realtor and Investor · Scottsdale, AZ · Member since 2017 · 1k+ posts · 1k+ votes
    8y

    This Summer is slated to be one of the hottest on the record books.  Already in Phx we beat a record over the weekend for heat that was set in 1947.

    If this doesn't convince you to get a home warranty on your properties, nothing will!

    Last year, I had to replace 2 complete HVAC units.  Both were on home warranties.  Our out of pocket was less than $1000 for both.  The annual warranty cost us under $800 for both.  Best $800 I ever spent!!  I have warranties on all of my properties.  I treat it like homeowner's insurance.  I hope I never have to use it, but when you need it, there it is.

    If your 2nd unit is still working, get a home warranty on it and start counting days.  Many of the warranty companies make you wait 30 days before they will cover.  At least that might help you eliminate the expense of having to replace BOTH units out of pocket.

  • Investor · Mesquite, TX · Member since 2018 · 6 posts · 0 votes
    8y

    Great advice about Home Warranties from Vincent V. & Cara L.  

  • Vendor · San Diego, CA · Member since 2016 · 55 posts · 16 votes
    8y

    Thanks again to all who replied!  Took a lot of advice and got a few different quotes and ended up with a brand new unit installed for around $3,000 total.  Also made a great A/C contact in case anybody needs help in the future - feel free to PM me!  

  • Investor · Little Elm, TX · Member since 2015 · 37 posts · 6 votes
    8y
    Shray, PM me. I can take a look at it and give you a better idea what needs to be done. It sounds to me like they are trying to make a few more bucks than they should on this. I live near Greenville so looking at it wouldn’t be too much of a big deal. If you interested, PM and we can exchange contact info.
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