Is Central Air worth the investment in Bayonne?
Hi! My partner and I just purchased a two-family home in Bayonne, NJ and are now ready to rehab. We were wondering if you guys in the Bigger Pockets community think it is worth investing in Central Air/heat for both units? Currently, we have window & wall ACs as well as baseboard heating. Definitely an eyesore, but of course, we are thinking about if Central Air will be worthwhile for the ARV. FYI, most houses on our block have AC units. Do you think we'll see a big enough return on this investment when we get the home re-appraised after rehabbing? Thanks!
Hi @Karim Hussein, I had a two-family rental property in Bayonne for the past few years down by W 21st St, and I did not have central air in either of the units. However, it totally will depend on where your property is located specifically and what your competition around you is offering. I would check the other rental properties you will be competing with and see if they have central air; also, I would check on rentals in the price range that you want to charge and see what they are offering. If you're trying to charge a premium rent price for the area, then you will need to offer a premium product, which usually would include AC. I don't personally know that I would think of it in terms of how it would affect your appraisal.
Hi @Karim Hussein central air is huge expense that believe it or not does not make a major difference to a tenant, everyone wants it but few will pass up the right property if it doesn't have it. I get top dollar for my rentals using window units. I know of rentals collecting over 4k/ month (for 1 unit) using window units. You will get a much better return on investment update kitchen bath and unit itself. Keep in mind my rentals appeal to high end luxury tenants. Regarding appraisal side of things, kitchen and bath. Increasing living space, adding a bath will produce the most.
-
Real Estate Agent New Jersey (#1326442)
- https://shawnmcenteer.exprealty.com/
Quote from @Shawn Mcenteer:
Hi @Karim Hussein central air is huge expense that believe it or not does not make a major difference to a tenant, everyone wants it but few will pass up the right property if it doesn't have it. I get top dollar for my rentals using window units. I know of rentals collecting over 4k/ month (for 1 unit) using window units. You will get a much better return on investment update kitchen bath and unit itself. Keep in mind my rentals appeal to high end luxury tenants. Regarding appraisal side of things, kitchen and bath. Increasing living space, adding a bath will produce the most.
Thank you all for your response! It’s great insights.