Updated over 5 years ago on . Most recent reply
HVAC vs adding rooms for ARV
Hi everyone! My wife and I have been listening to the podcast and reading BP books for almost a year now. After months of hunting we finally dove in and bought our first investment property!
Let's just say it's been a learning experience. And might wind up being an expensive one. The house was built in 1900 and has plenty of the old home charm and issues that you would expect.
We paid 80k and are hoping for a rehab budget of around 40k. It is currently a 4 bed 1.5 bath with a large structurally sound attic. The hope was to make a master bed/full bath in the attic to make it a 5 bed 2.5 bath.
What is hurting us is that the home still has the original 100+ year old gravity furnace. Asbestos wrap and all. We are having an HVAC company come out tomorrow to inspect it and make sure it is at least safe to turn on. Average quotes for new HVAC have been coming in around 15-20k for furnace, AC, and all new ductwork along with remediation and removal of the old furnace. So almost half our budget. We are hoping for an ARV of around 140-150k but now don't think we have enough to do both HVAC and finish the attic. So assuming the furnace works and is safe, would new HVAC or the master bed/bath in the attic be better for the ARV? We paid cash and are looking to BRRR it. Thanks in advance everyone!