Oil burning furnace... cost to replace?

[Moosefire]

I know this question is very much going to be different depending where you are. Im just looking to get ideas on prices as I've never gone down this road.

Long story short, lady across the street wants to sell her house. I want to buy it for a rental. Her furnace is an old oil burner from God knows when. Im guessing it has asbestos wrapped ducts too... but has anyone here had an old oiler torn out and replaced with a new energy efficient natural gas furnace?

Another thing is the house isn't piped for natural gas either.... but there is z tap at the street. Probably 50ish feet away from the house that id need to connect to.... not sure about that cost either.

Anyone out there in internet land care to share your experiences with these?

I'm in metro Detroit if it helps anyone reading.

Thanks!

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[TractorJeff]

Get a couple of quotes for Furnace brand and install. They need to come out to see the house to properly size the Furnace. Range should be between $4000 to $8000.
Gas Line install is going to be a Plumber?

 

[Moosefire]

Get a couple of quotes for Furnace brand and install. They need to come out to see the house to properly size the Furnace. Range should be between $4000 to $8000.
Gas Line install is going to be a Plumber?

Yeah thats definitely in the plans, but she isn't moving out until December, so I was just looking to mentally prepare myself for the possible wallet pain to come

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[Kaizen]

Had a guy in here a year ago to get a tune up. Tried selling me a new furnace for 13k. Wtf???? Asked if he was gonna wear a condom when he raped me? Paid to ha e him tune it and it was one percent below factory new. Moral is watch out. Don’t replace till summer. If you are replacing like for close to like I’d try and do it. Asbestos takes it out of diy realm.


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[brewchief]

If gas is at the street a call to the gas company will get you a price to get it to the house, mechanical contractor can then pipe from meter to furnace and anything else you want gas. Most of the time with oil in MI you will have electric water heater, may want to consider changing it as well.

80% furnace will need a chimney liner in most cases, 90 plus will go out side wall. FWIW I'm almost certain that it will not qualify for the energy company rebates since it's a change of fuel.

Gas company will charge extra for trenching if there is frost in the ground, if you can't start until December you might get stuck paying the extra charge or have to wait until spring.

Asbestos on the ducts needs to be abated, depending on the amount it can either be pretty reasonable or pretty ugly, if we see it somewhere that it would get disturbed by our installation of new equipment we won't touch the job until is removed and an air quality certificate is provided, we don't want to deal with a homeowner ripping it off and making a bigger problem then before they touched it.


I'd say the 4k to 8k range from above is fairly close depending on how much gas pipe and specific equipment. It would have to be a pretty involved install to hit the high end of that.
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[Moosefire]

Yeah I was planning on a 90+ unit, natural gas so hopefully just direct vent outside. I didnt think of the frost problem in December....

I didnt think about some rebates either! Its usually not much but hey, every dollar saved really adds up, especially for a rental property.

I'm not sure of the age of their old water heater, but I was debating having a line ran to that, as well as maybe towards the stove in case I ever replace that too. No one likes an electric stove....

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[James-W]

Personally, I wouldn't get too far ahead of myself until I was sure I was buying the house. It is OK to check prices for different things and all that, but I wouldn't get too involved until you have some assurances that you will get the house. That's just my thinking, others may have different ideas.

 

[Moosefire]

Personally, I wouldn't get too far ahead of myself until I was sure I was buying the house. It is OK to check prices for different things and all that, but I wouldn't get too involved until you have some assurances that you will get the house. That's just my thinking, others may have different ideas.

Oh I'm not going to do or purchase anything until it's in my name, however I need to get an idea of how much money I need to have out of pocket if I do get it in order to make these changes. I actually haven't even seen the inside of the house yet. Judging by the owner im imagining its going to be a disaster..... like I said I'm just trying to get prepared

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[Showkey]

Asbestos, oil tank, oil furnace, gas line, gas furnace ........internet guess $10k @ a bare minimum.

If your doing the furnace would you install AC ? Add $3500 if the electric service is up for the task. Add $2000 for a electric service.

Ball park estimates: Typical NG replacement 90% furnace with AC is $7000-$9000. One day install, simple with no add on like asbestos, NG pipe at $10/ft, oil tank etc

Not to derail the heating question
On single family rentals.........many discussions on that here and many other places. Many locations rent prices do not support the investment. Example $100k total investment ( cost plus renovation) will it rent for more than $1000 per month.

 

[Moosefire]

Not to derail the heating question
On single family rentals.........many discussions on that here and many other places. Many locations rent prices do not support the investment. Example $100k total investment ( cost plus renovation) will it rent for more than $1000 per month.

So its because of that 1% rule that im trying to get the price down to something manageable. Shes very eager to sell, shes moving in with her soon to be husband in his house in Colorado i believe (were in metro detroit)

According to what I see and know, I can rent that house (2 bed 1 bath, 1k sq ft) for around 1400-1500 a month. So 150k or under all in is where I am trying to be assuming she goes for it. Zillow says her house is worth 175, but as mentioned above its not in the best condition and needs basic things like that oil burning furnace removed and replaced so I'm hoping to get a list of things with their replacement costs together, subtract it from that 150k I want to be at and hopefully get it forvthat price.

Another good thing you brought up was air conditioning. It didn't even dawn on me that the old *** furnace probably doesn't have an A-coil built in with an air conditioner...... im sure glad I've asked, you guys brought up a few good ideas that I've overlooked already

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