Guys,

I'm looking at this house that I'm absolutely falling in love with!  Its a foreclosure and all the appliances have been removed.  I would need to replace water heater (thinking tankless) heat, A/C, and kitchen appliances of course.

I called NIPSCO for an estimate to run a gas line... $7,000 minimum plus permits, etc.  

There is already a propane tank onsite.  I'm dreading using propane because I've heard its very expensive.  How long does the tank last?  No body knows.  

Next option is a heat pump, which uses the A/C to heat the house down to about 30 degrees or so.  Below that, it would be electric heat.  

My current house is around 1,000 sqft with 80% efficient gas furnace and not so efficient windows.  Winter NIPSCO bill (gas/electric) probably $125--175 depending on the winter weather.  I'm sure if I had better windows and more efficient furnace, the bill would obviously be lower.  I will be keeping this house and renting it out.

I don't see a gauge on the propane tank, so I have no idea how much fuel is in the tank, if any.

Does anyone here either use Propane or a heat pump (with electric auxiliary heat)?  If so, can you please share your experiences?  

Of particular concern is if the tank has a leak, and/or runs low on fuel during the coldest spell, I could potentially be looking at $1,000 or more to fill the tank.  On the other hand, having a heat pump there's probably extra maintenance, and once it gets cold enough, its 100% electric heat.  

Help me out guys!  Thanks so much!

I haven't kept up on tankless water heaters, but what I do recall of them 13 years ago when I bought my house was they used a lot of power to heat the water on demand.  On average, it matched the power consumption of an always on tank heater.  The other drawback of the on demand heater was it would change water while in use.  At first, it would restrict water pressure as the heat built up, then increase pressure when it's warmed up.  Depending on the application, that may not be detrimental, however it would be a learning curve for people who are not familiar with how the system works.

I've spent a lot of time today researching water heaters alone, and am going with a Hybrid (electric) heat pump water heater.  They are roughly $400 more than a tankless, but annual operating costs are only around $200/ year versus $555 for a Rheem 100% electric standard water heater.

Having electric auxiliary heat as a backup to the heat pump (for heat/ac) is going to be expensive...need to cut costs anywhere I can...

Depending on where you live, the need for auxiliary/emergency electric heat will be more up north than in the southern part of the state. You really need the COP (cost of performance) for electric vs. liquid propane vs. heat pump based on utility charges from your utility. Up north here, I don't recommend heat pumps if you have NIPSCO electric as the rates are pretty high. You can also consider a 2 stage gas furnace with a heat pump, use the heat pump until it doesn't keep up, then use the furnace.

The house I've been in for the past ten years has a heat pump, I think they should be illegal north of the Mason-Dixon.  I replaced the heat pump four years ago and hoped for better performance but was sorely disappointed.  The "heat" coming out of the vents sucks and if it drops below 20* outside the house is just going to be cold no matter what.  I live on a slab which isn't helpful but I'll never own another heat pump again.  

I had natural has in my last house and miss it dearly.  The bills were cheaper and the house was warmer (also on a slab).

To run NIPSCO gas lines it would be minimum $7,000.  Already propane tank there, but I remember a few years ago where the price of propane shot way up.  Having straight 100% electric heat here in Lake County (Lake Station) is horrendously expensive.  Only other option I can see is the heat pump with electric auxiliary heat.  I am going to miss natural gas heat dearly, but I just can't pass up on the price of the house.  Its like my own little heaven.

Ideally you fill the tank in late summer and have a warm enough winter or big enough tank to take you to February get a smaller fill then wait for late summer again.
Those people that ran out in late December January that year when demand was really high and supply was low.

I concur.  If you can get the tank filled, fill it during the off season when demand is low.

We have a dual fuel and love it.  It is a heat pump down to 31*F then kicks over to propane.  We have a 500 gal tank and it needs filling twice a year.  We also use the propane for our gas fireplace and leave the pilot light on the fireplace year around, which uses about 8 gallons a month.  To fill the tank it usually costs about $600 in September then about $1600 to fill again in March.  Our electric bill runs between $250-$325 a month.  House size is 4200 square feet and we keep the temperature at 74*F year around.

That's all the information I can give you.

There is no gauge on the tank.  The house is a foreclosure and HVAC, water heater, kitchen cabinets and appliances all removed.  House is 1,560 square feet.  Still looking into it.  House is also in a flood zone, so I will need flood insurance, and need to find a surveyor (cheap hopefully) to do a land/height survey and submit that to the insurance company to see how much a flood policy will cost...so many things to consider with this property...

I have a Trane heat pump and love it... kept up just fine out in the country in -45 windchill winter before last.

Flood insurance will depend on the "zone".  FEMA resurveyed my area and my property was designated a higher risk than before. I think I pay about $400/yr.

 

Hey guys,

Thanks for all your replies.  I absolutely love the house, but there is just one issue after another.  The Garage is on a different parcel, and has gone to a tax sale because the bank didn't include the garage in the foreclosure.  Also, I would need to get a flood survey for the flood insurance, and the cost of the survey is $700-1500.  With this in mind, I'm just going to need to pass on the house.

Erick