Working on an HVAC system can be expensive, but when it adds value to a fix and flip home, it’s an asset. HVAC is essential because it provides a home with the equipment needed to regulate indoor temperatures. A property that has issues with HVAC will make potential buyers think twice about purchasing your home. The installation of a new gas furnace or central AC unit plus ducting can range in price from $6,000 to $12,000. The average cost of a heating and cooling system depends on a variety of factors, including:
- Local labor rate
- Energy efficiency rating
Estimate Your HVAC Costs
When you’re estimating the costs for flipping a home, especially an HVAC renovation, the climate is the first factor you need to consider. Homes farther south need an HVAC system that can withstand a higher cooling capacity due to hot summers. States further north require an HVAC system with a higher heating capacity for the cold winter months.
If an HVAC system is already in place, there are likely ducts to deal with and change out. Over time, these ducts lose their efficiency and must be replaced. New duct installation costs can range between $1,200 to $4,200. The final price of the ductwork replacement depends on how complicated the installation is. Another determining factor of the overall project cost is the size and age of the home.
Proper insulation, sealing and other energy-saving techniques, such as glazed windows, are ways you can save money on your property’s energy costs. Homes that retain warmth well can help mitigate HVAC expenses.
There are often hidden costs with fixing and flipping homes, especially with older ones. You may spend more money flipping an older house due to lead paint and asbestos. The removal of lead paint and asbestos are required before the house can be occupied. If you plan on making drastic changes to a home, such as adding a room or a bathroom, you have to alter the home’s structure, which is expensive and will change your total HVAC costs. To receive the best ballpark figure or estimate, you need the help of HVAC experts. These professionals assess the effectiveness of your current system and suggest where beneficial changes can be made.
After a thorough assessment, you will know what needs replacing and how long you have to make the necessary repairs before other factors start to take place and cost you more money. Professionals that help you with your fix and flip project will have an idea about local costs. Don’t be afraid to research on your own and find the information you need. You may be able to find parts for a reasonable price online or by other means. Make sure you keep a receipt of all your purchases to repair the home and bring it to code so it can be put on the market.
Inquire About Hard Money Loans
HVAC renovations are often required to fix and flip homes. Although these types of projects are profitable, you have to spend money to make money. This is a financial situation where Wildcat Lending can help. We offer hard money loans for fix and flip projects. Contact us or apply for a loan to get the loan you need.