New Windows or New Furnace with A/C?

[dwb]

I`ve come up with about $5,000 suddenly... I have a duplex that is nearing vacancy... There is no air conditioning and the windows are incredibly old and need updating.

I`ve got 2 quotes to consider - one for $5,000 in new windows and another $5,000 quote for a new energy improved furnace and Air Conditioning. At this time I can only choose one as the rest of my funds have been budgeted for kitchen renovations in other properties.

I am assuming that the furnace and A/C route is best to go now as A/C in the summer is a better selling feature for tenants as oppossed to new windows in the house (and zero A/C). I`m looking to increase rental income...

Which would you choose and why?
Oh, I should mention that I`ve done the energy audit thing too and the furnace gets more immediate funds back.

Thanks in advance.

 

[invst4profit]

It depends

what is the condition of the existing furnace?
Will it need emergency replacement in the near future?
Do the existing windows have a negative impact on the appearance of the building?
Is it possible to add AC to the existing system?
How much more can you get in rent if you add AC?
Most importantly who pays utilities?

In the case of a new energy efficient furnace if the only benifit is reduced heating costs to the tenants I would find a better use for the money.
I would first do what makes me money, then what saves me money and finally what would add to the sale price of the property.
In the case of non emergency spending I always concentrate on increasing cash flow to determine what I spend on.

 

[housingrental]

If the windows are hard to operate or mouldy and the furnace has some years left go with the windows - I`ve found lots of tenants aren`t happy with old one`s and tenants/you can also add window a/c as needed for cheap.

QUOTE (dwb @ May 22 2008, 02:35 PM) I`ve come up with about $5,000 suddenly... I have a duplex that is nearing vacancy... There is no air conditioning and the windows are incredibly old and need updating.

I`ve got 2 quotes to consider - one for $5,000 in new windows and another $5,000 quote for a new energy improved furnace and Air Conditioning. At this time I can only choose one as the rest of my funds have been budgeted for kitchen renovations in other properties.

I am assuming that the furnace and A/C route is best to go now as A/C in the summer is a better selling feature for tenants as oppossed to new windows in the house (and zero A/C). I`m looking to increase rental income...

Which would you choose and why?
Oh, I should mention that I`ve done the energy audit thing too and the furnace gets more immediate funds back.

Thanks in advance.