I spent $12,650 on an HVAC for my Rental (8 Lessons Learned)
Рет қаралды 34,737
Күн бұрын⭐ Join Rental Property Mastery, my coaching & learning community:
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🎙️ Episode 347 - From selecting the right equipment to prioritizing preventive care, Matt offers 8 lessons to ensure optimal efficiency and longevity for your property investments. Plus, learn the best practices for system maintenance to help any landlord build bulletproof rental properties in 2024.
📄 Show Notes:
www.coachcarson.com/lowmainte...
▶️ Next Video: This is my Ideal Rental Property (size, materials used, buy box)
• This is my Ideal Renta...
🎬 Topics Covered:
0:00 - 1. Choosing wisely on HVACs
1:48 - 2. Understand HVAC Pricing
6:33 - 3. Choose the right brand for your system
17:33 - 4. Prepare for big repairs
20:04 - 5. Split system vs Forced Air system
30:21 - 6. The maintenance of your system
34:55 - 7. Best practices for maintenance
36:36 - 8. Matt's advice for heating/air units
39:02 - Connect with Matt
40:12 - Ideal criteria for rental properties
🔗 Connect with Matt:
• Matt's Instagram: / lumberjack_landlord
• Matt's KZfaq: / @lumberjacklandlord
• Matt's Course: www.lumberjacklandlord.com
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Footage & Photos credit to: Pexels.com & Pixabay.com
@CoachChadCarson 28 күн бұрын
If you liked this one, I recommend this next video about my buy box (aka my favorite types of properties and materials): kzfaq.info/get/bejne/qJtzkq-n3JvFh6s.html
@Salsero81889 28 күн бұрын
The crazy part is if you just go with the average cost around 7k and you factor in a cash flow of $300 per month, you’re pretty much in the hole for 2 years just off of that expense. But it’s really longer because we already know within 2 years a bunch of other stuff will come up as well.
@priceandpride 27 күн бұрын
Cest la vie
@MichaelDillin 8 күн бұрын
I ended up having to replace a swamp cooler on a rental cooler cost about $12-$1400. I had a hard time finding somebody to install it finally found a guy that was willing to do it. He wanted $2800 and half upfront I agreed to the price which was outrageous until he asked for half upfront then I knew I wasn’t gonna do it. I ended up finding a guy With a helper, he did it in one day and it cost $1800. I paid him. He was happy I was grateful it was done. Teaching your children, the trades will pay off in spades
@LuisMartinez-js5fb 29 күн бұрын
I did have to replace the AC /furnace in one of my units and I got several quotes 12k, 17k with big companies like Home Depot, Lowe’s… but I kept looking with local small vendors and I got a new one for $4,800 installed…. I don’t want to install a high end AC for a rental unit…it’s been 8 months with cold and hot days and the unit works perfectly… this is including internal , external and installation … so my recommendation is to keep looking for vendors in your area
@CoachChadCarson 29 күн бұрын
Shopping can pay off for sure. Thanks for the comment.
@williamfrederickiii1683 28 күн бұрын
I did the same. Got quotes from local installers then discovered a guy who lived near me that was an installer who did work on the side. Ordered parts online and him install for half the cost. Working great.
@LumberjackLandlord 28 күн бұрын
Always be shopping! Great comment
@user-oy4qp9pq6i 26 күн бұрын
The condensing furnaces such as 95+ efficiency units are much more complex and expensive, and often have higher maintenance cost.
@buzztune-ft6lc 22 күн бұрын
Appreciate this collaboration a ton! Lumberjack Landlord looks at the details on another level! His Sunday livestreams provide so much value along with your content Coach!
@Metaskriptz 19 күн бұрын
I did all my ac work based off KZfaq and bought my own unit online. Only thing I paid was like $350 for a tech that was an authorized dealer to connect thermostat, braze, vacuum, and charge for warranty purposes. It has been working great for almost 2 years now
@rickychavez1473 18 күн бұрын
Run tstat wire, Braze, vacuum and charge. What u do?? just sit the condenser on the pad. 🤣😂🤣😂
@Metaskriptz 18 күн бұрын
@@rickychavez1473 I ran the stat wire. I placed the air handler and condenser. I had to upgrade the electrical to 6ga from the attic to panel in the basement. I will say he told me I needed to do that to install the heat kit. So yes I did all the physical hard labor. Tech was maybe there for hour and half.
@laurasamaniego5937 28 күн бұрын
Amazing content! Love, love these maintenance tips. I replaced both HVAC in both units of my duplex in the last 2 years. $10,000.00 for both. Maintenance and good installation are the keys. Thank you, Matt and Coach Carson, for sharing your knowledge.
@aaroncs1979 18 күн бұрын
We had a new furnace installed in 2020 for $2200, at that point we couldn't afford the new central air unit that would have cost an additional 1500. In 2023 we looked into it again and through the same company it was quoted at 4000. It was a easy pass. I can't believe how much prices went up.
@jm30603 28 күн бұрын
I love these detailed videos! Please do more
@FinancialFIRE-Fighter 26 күн бұрын
Amazing value in this episode
@leeroach3381 28 күн бұрын
Very helpful Thank you for sharing
@JevonMusicGroup 29 күн бұрын
This video is perfectly timed! I'll soon be getting new ac and furnace for my primary residence which will eventually become a rental property.
@CoachChadCarson 29 күн бұрын
Glad to hear it! Thanks for the feedback!
@ji-inroh495 28 күн бұрын
Split units are actually pretty high maintenance. The wall unit fan (blower), evaporator fins, and condenser fins need to be cleaned annually. The filters don't do much.
@jospoz619 27 күн бұрын
Regular units need to be serviced every year too.
@FoodnHVAC 17 күн бұрын
If you're having to wash the indoor units that often, you have pets or the occupants are filthy animals. I've seen some dumbass builder put them in a commercial kitchen. It's fked within the year with the grease clogging em up and shit growing on the blower wheels
@PeterKontor 28 күн бұрын
Great conversation. I bought slab on grade 1954 house. Changed and improved envelope with zip system with insulation. I'm retrofitting radiant flooring as main heat source during very cold season and 3 head mini split to support it and transition between seasons. In summer I use minisplit just to remove humidity. That combination is best imo for slab on grade
@a104917 28 күн бұрын
Coach and Lumberjack are my favorite duo! You two and ThatADUGuy are the ultimate trio!
@CoachChadCarson 27 күн бұрын
thank you!! means a lot🙏
@billeidaho871 19 күн бұрын
anyone spending $7000.00 for labor on an AC system replacement needs to find another AC technician, that is OUTRAGEOUS!
@jldsystemsltd.4657 28 күн бұрын
I work for York! Thanks for the shout out!
@rfreeman5012 28 күн бұрын
I put a heat pump with splits in my 3500 sqft house, worked great, can heat and cool, uses less energy.
@priceandpride 27 күн бұрын
Agree, and you don’t have to use old fuels! Much more efficient and modern
@dancaruso2745 19 күн бұрын
Great info! Bring back Matt every chance you get!
@CoachChadCarson 19 күн бұрын
Thanks! We are having fun.
@janitoronfire 28 күн бұрын
Matt is an absolute beast. 👹
@LumberjackLandlord 28 күн бұрын
Thanks very much!
@daveyyyyyy 27 күн бұрын
Love the insight! Would love to see you do this with an electrician, roofer, plumber, ect..
@fishclipz 29 күн бұрын
Maintenace is huge, but is the gas pressure set correctly, is the refrigerant charged correctly, did they do a proper evacuation. Installation quality is THE most important.
@CoachChadCarson 29 күн бұрын
Good point. And since I don't know how to judge ANY of that it's trust with installer. I'm willing to pay up some to get someone I trust.
@LumberjackLandlord 28 күн бұрын
That comes downtown to installer and maintenence contractor. Hard to find out how good or bad someone is at install and maintaining till you have used them so diligence up front matters for sure.
@TexasBarnRats 22 күн бұрын
So interesting how different regions have such different needs and requirements. I'm sure the info in this vid works just fine in their area, but much of it is bass-ackwards and bad advice for my region. There are only a few air conditioner factories that make the same unit for many brands. The #1 question you should ask about a central air conditioner is the compressor. Always specify the Copeland brand Scroll-type compressor. It doesn't matter what brand unit, as long as it has a Copeland Scroll compressor in it. (stay totally away from reciprocating-type compressors...and RUN away from any Bristol brand compressor. During installation, pay the installer an extra $75 and have him yank out the factory-installed 1-Pole contactor and replace it with a 2-Pole contactor. Also have them install a high-pressure safety with a manual re-set. Might cost an extra 100-200 bucks. These cheap measures have probably saved me more than $100-200K over the years, not to mention the headaches.
@bertellijustin6376 16 күн бұрын
Do y’all not have crankcase heaters where you are?
@derrickp 28 күн бұрын
Based on experience I think Matt is somewhat off base with mini splits. I am in Western NY so we have cold winters. We have a 1500 sq ft house with a Daikin mini split. Our most expensive heat bill is $100/month and is usually around $80 per month.
@LumberjackLandlord 28 күн бұрын
I've done systems for over 150 units. Appreciate your opinion but old buildings are porous. Most minis can't keep up unless they have been upgraded to new energy efficiency. Every winter I see guys out straight for a month replacing heat pumps that failed in cold weather. Newer systems are better but still don't compare to the btu output of a ducted fha set up.
@derrickp 28 күн бұрын
@@LumberjackLandlordif the building is poorly insulated, with poor windows that isn’t the mini splits fault. Some states aren’t going to give landlords options soon. New builds and replacements will have to be electric heat and mini splits are the most efficient. Now any HVAC guy will tell you a mini split shouldn’t be the only heat source. So I agree with what you are saying.
@Xtc2212 28 күн бұрын
What brand of A/C unite are recommended for longevity and efficiency?
@russellebenton 28 күн бұрын
Im an actual hvac professional with over 20 years in the industry if you have a question
@priceandpride 27 күн бұрын
I’ve never heard of any renters considering their utility bills when deciding to move after they’re already in the unit
@jacobyatako 29 күн бұрын
I replaced an AC on 2023 for $10500. Got a few bids but ultimately used an AC guy that I know well and use frequently. I also insure his business so I know he's covered. I try to exclusively use people I insure and do other business with
@justinu4521 29 күн бұрын
I LITERALLY JUST THIS PAST SATURDAY replaced the entire HVAC on one of my duplexes. Cost me 6k with parts and labor. 3 ton unit. I’ve learned so much. I’m here if anyone has a question
@andresvaldes2491 28 күн бұрын
Did you buy a new or used HVAC? That's the lowest price I've seen in a long time?
@TheJuxify 28 күн бұрын
Literally buying a property that will likely need an HVAC replacement in the next few years. Commenting for updates.
@justinu4521 28 күн бұрын
@@andresvaldes2491 everything was brand new it’s a small duplex so only needed a 3ton. 3k for parts 3k for labor.
@justinu4521 28 күн бұрын
@@TheJuxify make sure it’s actually worth it. If it’s going to take years to repay yourself don’t do it lol
@CoachChadCarson 28 күн бұрын
Thanks for the comment and for sharing numbers! Mine would've been about $8000-8500 for just the 2.5 unit. My extra cost was ductwork labor to install a new air return and reinsulate all the ducts. Yours is still a good deal, but with the bigger unit and extra duct work that explains part of the difference, I think.
@andrewo5439 28 күн бұрын
Matt is awesome! Coach, for your rentals do you have seperate CAPEX account where you set aside funds every month, even on months when there is no CAPEX, to prepare for these type of expenses? If so, do you target a % of the rents each month , set $ amount , etc??
@CoachChadCarson 28 күн бұрын
What we do now is set a goal for a certain amount of cash in a reserve fund (for example - 3 months of operating expenses). Once we hit that amount of reserves, we don't keep setting cash aside. We use extra cash to buy more properties, pay off debt, or give myself personal income. Then we pay for most CapEx out of operating profits. So, that number can fluctuate a good bit if we have high CapEx months. And if we have too many expenses that month, we'll feed the operating account with the cash reserves to top it off. And then we'll fill the reserves back up with operating profits in future months. The only time we really had to dip a lot into reserves was 2008-2010. But I was glad we had them!!
@LumberjackLandlord 28 күн бұрын
Thanks very much!
@victorial.4345 20 күн бұрын
My furnace is still working now , it is carrier , house is 19 years old. 2.5 tons , should I replace the furnace as well ?
@roberttrevino8831 28 күн бұрын
Correct! Home appraisal difference between the mini split and traditional HVAC. Does one add more home appraisal value than the other?
@LumberjackLandlord 28 күн бұрын
Thanks sir! Quality of system always impacts appraisal in the adjustments.
@truckerzee9643 28 күн бұрын
I learned the hard way and now I highly the pros for HVAC. Do you have an any spreadsheets I can scan ?
@LumberjackLandlord 28 күн бұрын
Always a great strategy
@picklerix6162 27 күн бұрын
If that’s a rooftop unit, the first thing you need to do is find somebody with a crane. Right before the pandemic, I bought a 100k btu gas furnace, a 5 ton coil, and 5 ton condensing unit (16 SEER) along with new plenum and installation materials. That total cost was less than $3600. During the pandemic, prices increased 25-40% on equipment if you could get it. I buy equipment for myself online and there is a warehouse where I can pick up the equipment. Post-pandemic, prices have dropped a little and equipment seems to be available now.
@CoachChadCarson 27 күн бұрын
the picture in video was stock footage - not our actual unit. We should have used a different photo to not confuse the issue. Thanks for sharing your experience and commenting!
@SCpalmetto00 28 күн бұрын
What property manager do you use?
@patricksquires6348 27 күн бұрын
Thing I ran into is mini split repairs as a landlord… Repairs… can be 5 zillion dollars. So maybe it is fine if DIY replace or take time to find correct right tech - but challenge is for a rental where tenants expects quick repairs. IMO as a landlord - Don’t force solutions not supported in the market of your units. If you have solid contractors in your area supporting a solution - great. If not - don’t do it. Goes for anything.
@victorial.4345 20 күн бұрын
I have a rental in Albuquerque NM need replace a whole unit of HVAC , now still getting bids , two ac company bid with heil , another one bid with Trane. If anyone of you have a good one to recommend , that is so appreciated
@krassimirpetrov7131 29 күн бұрын
In the hvac world they’re taking about SEER , and ya it varies a lot
@LumberjackLandlord 28 күн бұрын
Yes sir. Thanks for comment
@scottcoleman5088 23 күн бұрын
Happy Father's Day, Chad and Matt. Chad, you got a big shout out on lumberjacks. Sunday show and well deserved, so have a great day.
@CoachChadCarson 23 күн бұрын
Thank you!
@dewholdingsllc1050 19 күн бұрын
You can purchase HVAC equipment directly from a distributor and contract the labor.
@freeestyleobsessed 26 күн бұрын
I’m seeing people with 1200-1400 sf homes paying $26,000-$30,000 for a new HVAC system I’m in CA
@Pseudify 24 күн бұрын
That’s highway robbery.
@williamroberts5816 28 күн бұрын
Go Blue!!!
@ayarborough12 28 күн бұрын
Just get an AHS home warranty on the rental property for about $60 per month. They write you a check if the repair cost as much as a replacement or if a part is severely backordered
@LASFVEGASHOUSTON 28 күн бұрын
They have a cap on what they will pay out. But it is helpful if you are not handy.
@mattlewis2110 29 күн бұрын
I am looking at using PTAC units like a hotel uses because they seem to perform better in the cold. Thoughts?
@CoachChadCarson 29 күн бұрын
I use these for some of my studio apartments. So, for small spaces I'm a fan (no pun intended😄)
@mattlewis2110 28 күн бұрын
@@CoachChadCarsonlove the pun. 4BD 2BA 1600 sq ft. Completely gutted with spray foam new electric. One in each bedroom and the living room. Looking for medium term rentals. Am I on the right path. Mini splits seem great but we get down to -10 + degrees.
@andreycham4797 28 күн бұрын
They do not work in cold climates . Look up cold climate mini splits. The best of them can supply heat down -31 F
@LumberjackLandlord 28 күн бұрын
@@andreycham4797agreed
@LumberjackLandlord 28 күн бұрын
Only in small spaces. Much better off with minisplits with cassettes that are rated for 20 below or better
@StardustMonkey 16 күн бұрын
Here is California I was quoted 18k to design my HVAC system for my new construction project and 16k to install
@johngatsby1473 14 күн бұрын
Buy it online and find a tech that you can pay to do a side job. Offer him 750 to install....people need money and for 4 hours of work....750 is good
@michaellalanae7228 25 күн бұрын
Window unit. Contact Mr cool and do the installation yourself. That's what I do in the residential housing market.
@stevencoyote746 28 күн бұрын
It's costing me 13k parts and labor for a whole system 3.5 ton in lufkin texas
@edwardchaparro7064 9 күн бұрын
New carrier 4 Ton installed $4500
@jasonhowell8 28 күн бұрын
In 2021, I replaced the entire HVAC systems, including ducts, for both sides of my duplex and spent about the same as you did. I'm sure prices have gone up over the last 3 years, but not that much. I got a referral from another investor for that A/C guy. It pays ("saves"?) to network.
@LumberjackLandlord 28 күн бұрын
Absolutely great advice. Thanks for the comment.
@roberttrevino8831 28 күн бұрын
What is the appraisal difference?
@CoachChadCarson 28 күн бұрын
Do you mean appraisal difference with one type of HVAC vs another?
@dewholdingsllc1050 19 күн бұрын
Those high price brands you mentioned are not a better warranty than a Goodman or a Daikin
@johnwhite2576 28 күн бұрын
20 years is a good run….a. Loy has to do with location - 1. hvac has sooooo many up off artists for swap outs. 2. HVAC is very difficult compared to latex to other trades if you do it correctly (many-most?) don’t 3. The installer is everything 4. Makes no sense to buy much over single stage for rental, but makes great sense to reach for the comfort of fully variable system …NB A p series Mitsubishi -commercial grade- would cost control or less than 7,000 in almost any case- 6,000 for less than 12 man hours that’s $400nan hour?? By the way they aren’t going to volunteer the cost of equipment…the good news ? HVAC is goign to cost substantially more starting in 2025..
@ipeteagles 20 күн бұрын
IMO, air filters need to be changed every 2 months to keep the dust down. this is talking about 1000sq ft and 1 person on a 2 in 1 AC/Heater
@calivalley9056 28 күн бұрын
Efficiency equals SEER rating for the most part. I personally would never buy another single stage compressor unit again. The minimum would be a two stage or a variable. Just replaced two units in my duplex, located in the Midwest, with two stage units. I live in California, I would replace here with variable or heat pumps, the reason is cost to the renter, inefficiency in HVAC will drive people out of your property due to how expensive electricity is here.
@LumberjackLandlord 28 күн бұрын
Market depending that solution doesn't work in places with real winters or in older homes that haven't been gutted to get energy efficiency.
@calivalley9056 28 күн бұрын
Agreed, heat pumps work out here in southwest, upper Midwest and upper east it gets too cold. I only deal in single family, some duplex, all in Midwest, the difference in a single stage to a dual stage is marginal when doing a full replacement of the entire system, it’s use cost positive being past on to the tenant. So yes, it comes down to region, state/local energy cost, and class of property.
@douglasdangelo6755 19 күн бұрын
Unfortunately the core components of AC systems are often made by the same company.
@MAD-DUKE 15 күн бұрын
No heat pump talk?
@stevencoyote746 24 күн бұрын
Just had a house in Texas quote for mini split and HVAC let me say with the mini split $1500 a head I needed 5 heads so that's $7500 plus labor I was getting close to 11k vs HVAC at 13k also if one head goes out the whole system will shut down. So I decided to go with an HVAC system. I believe the mini split it's place but sometimes not.
@-bu6kzL 28 күн бұрын
The lease should have made this the tenants responsibility. Worst case scenario you split it with the tenant. It's quite common on commercial properties. This is on you and your management for buying or setting up a bad lease agreement.
@LumberjackLandlord 28 күн бұрын
Completely different world. In commercial it's standard. In residential... less than 1 percent are responsible for the systems.
@CoachChadCarson 28 күн бұрын
yeah, not normal for us either. It's landlord's responsibility to pay for replacement or repair.
@-bu6kzL 28 күн бұрын
@@LumberjackLandlord The unit and roof pictured look like a commercial hvac unit on a commercial property. I'd be very surprised if that is a residential property.
@LumberjackLandlord 28 күн бұрын
@-bu6kzL it's stock footage that wasnt the house. It is a house. If it is commercial. I agree. It's often called triple net. I own commercial real estate as well.
@RyanAsbury-wr5ft 28 күн бұрын
Line sets are just soft copper pipe and are readily available idk what he's talking about.
@LumberjackLandlord 28 күн бұрын
The fact that controls companies didn't have any during covid. That's a fact. I had line sets I waited 3 months for because we couldn't get them I work with some of the biggest suppliers in the country and at the peak of covid you couldn't walk into a supply house and get them. You can also make them on your own. That has an issue. Your warranty has a high likelihood of being voided when you have an issue.
@RyanAsbury-wr5ft 28 күн бұрын
@@LumberjackLandlord I'm still unsure what you're actually referring to. The line sets are just copper and you can order them on supply house or Grainger all day long. I work for a commercial HVAC contractor and I purchase this stuff all the time and have since 2019. But I'm just being nitpicky. The overall message of the video was good and made sense, but being in the HVAC trade there were a few things you said that weren't exactly correct or a little misleading.
@patcoleman3319 22 күн бұрын
LUMBER JACK SHOULD STICK TO TALKING ABOUT FINANCIAL VEHICLES AND TENANT PROBLEMS. I LIVE IN THE WEEDS WITH THESE PRODUCTS AND HE STARTS TALKING OUT OF HIS REAR END WHEN THE CONVERSATION GETS TOO TECHNICAL.
@ursulalauriston1352 23 күн бұрын
I need to know what Matt looks like without a hat.
@CoachChadCarson 23 күн бұрын
Gotta search hard on internet to find a pic! Lol.
@Auguur 11 күн бұрын
"I could almost buy a car for what it cost for hvac" really? Have you even looked at car prices recently? Double that price, then maybe you have one or two options
@CoachChadCarson 7 күн бұрын
Used cars in my case. We just bought one for $20k so that's what I had in mind.
@mosesaltair3893 28 күн бұрын
What????
@davidater9 28 күн бұрын
This conversation made no sense.
@CoachChadCarson 28 күн бұрын
what could've been better?
@capdaviscams7169 20 күн бұрын
Gave you thumbs down and hit do not recommend channel on multiple premium accounts.
@CoachChadCarson 20 күн бұрын
Any particular reason?
@dropoutandretireearly1781 28 күн бұрын
I always keep an eye out for HVAC, ELECTRICIANS, PLUMBERS, PAINTERS VANS on the streets and I'm always stopping and asking guys if they do side work. I keep a good list of people in my phone that are about 75% cheaper !!!! LOL !!!!! WELCOME TO JOE BIDEN INFLATION !!!!! VOTE TRUMP !!!! IM TOO FRUGAL TO VOTE FOR BIDEN !!!! LOL !!!!
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