Editorial Director at BiggerPockets · Atlanta, GA · Member since 2023 · 28 posts · 42 votes
My fiancee and I are in the process of prepping her condo to rent. This is our first rental, so we are very much rookies. The HVAC (heat pump and furnace) are both very old and will likely won't last through the upcoming summer. The condo is in Atlanta, so the A/C will get a lot of use once it starts warming up. Our options are buying a new HVAC system, which will run us probably $5-10k based on our research, or we could go with a "rental" HVAC from a local company that includes all repairs, maintenance, filter replacements, etc. for a monthly fee of about $100 over 8 years.
I figure we could offset the monthly cost by increasing our asking rent and save our reserves for something else that may come up, but I could also see this limiting our cash flow potential for the next almost decade.
Has anyone run into a similar scenario? Any suggestions?
The range of $5-10K is a big one. If the cost is at the upper end, then renting one would cost you close to $10K by the time you are done. I guess it depends on how long you expect to keep the place and what you'd do at the end of the 8 years. If you go to sell it, having a HVAC that is rents may turn off quite a few buyers.
I don't hate the idea of leasing HVAC units.. however, marketability on sale of the property might be a little confusing as Theresa mentioned.
If this place is going to cashflow well - run till failure is an option. However, It'll be cheaper to replace these units when its in feb/march than during the summer or winter.
Which option do you think would help you sleep better at night?