I found a great 4-unit foreclosure that requires very little repair besides a new boiler. There are several threads about the pros and cons of a boiler but I can’t find an estimated replacement cost. If you have replaced an old boiler lately or received a quote, what was the amount? What area where you in?
Thanks for the advice. Ben
A furnace yes, a hot water heater yes, a boiler no. I would get a plumber to give me an estimate though.
I replaced a gas boiler in my rehab over the summer. It cost 4500 and it was 2 zones…
I have replaced a Boiler in an old SFH we have last year for $5,200 with 4 zones. This year we purchased a 4plex and it used to have a boiler, but the previous owner had replaced it with electric baseboard heat. If I had only known this before I replaced that old boiler I would have saved at least $3,000. Those electric units cost any where from $50 to $150 each and they are easy to install.
Boilers are expensive to replace and to repair, in comparison to other heating sources. The practice of replacing boilers with furnaces and electric heating is a popular concept if your looking at it from the right point of view.
In my area (Cleveland, OH) when one boiler is used to heat multiple units the expense is generally on the landlord because there is no way to meter each individual unit. Most often the landlord will advertise the vacancies with heat as a service provided by the landlord. They will compensate by raising rents.
A down fall is that this kind of situation? You almost always find the thermostat in the hottest part of the building in order to keep the heat at a minimum. Tenants generally know this and prefer to be able to control their own heat rather than being dependent on a landlord who is trying to save on their own heating bill. A buddy of mine just moved out of a place like this because they only kept the place warm enough to keep the pipes from freezing.
But, I’m seeing a growing number of systems like this get replaced with in unit furnace units creatively installed, or with electric baseboards or other electric heaters of some sort. The reasons are because the cost to do this is comparable to replacing or sometimes repairing a boiler. Then, the heating bill is paid by the tenants. So when all of these cold weather babies up here start cranking up the heat they are paying for it themselves.
Thanks for the insights and replies. I have a rough estimate for $12,000 to replace the whole system. Estimate/number was provided by me describing the details of the property over the phone and answering a few questions so there is certainly some play in the numbers.
The more I talk with people the more it seems like an electric heat source is the way to go – I am financing the repairs through a 203(K) loan so the cost is not a big issue, the tenants will pay for their own heat in the cold winters of Dayton, Ohio, and a lot more people know about electric sourced heaters than boilers so repair cost is cheaper.
I will let you know how it goes. Inspectors and more estimates come in this week.