You have been given a lot of advice, some of it spot on and some a little confusing. Let me help...

HVAC is determined by heat load and heat loss. This determines how many BTUs it takes to heat and cool your space. Insulation matters! There are other factors involved, but insulation is important. Choose an HVAC contractor that will perform a Manual J on your space. A manual j will determine your heat load and loss.

In terms of money spent on utilities, insulation matters! HVAC equipment has very energy efficient systems available, but it won’t matter if the space is not insulated well. Talk to a contractor that specializes in insulation about your options. You can have your existing walls insulated without tearing up your sheetrock.

Rewiring your existing panel might be required for local codes based on safety and age of existing panel. Where I live, it is against code to install a gas or oil furnace in a closet with an electrical panel.

As for type of equipment, boilers and geothermal for such a small space is overkill. Personally, I would recommend a mini split heat pump. Look into either Mitsubishi or Daikin. Both are VERY energy efficient and will both heat and cool your space comfortably, do not require replacing duct work and are whisper quiet.

So my advice is this...Spend your money on insulation and windows. When you know your insulation value, hire an HVAC contractor who will do a Manual J and size your equipment accordingly. Do not go by, “rule of thumb” and finally, get another electrical contractor who will do a free second opinion. If they also say replace it all, ask them why. Your local building codes are available to you through your municipality.

Be informed ahead of time. Trust but verify and remember, If you think it's expensive to hire a professional to do the job, wait until you hire an amateur." Red Adair

There are gas furnaces which measure 14.25 inches wide and 29 inches deep, with a height of 35 inches. You should have a minimum of 12 inches on each side, which is very tight if the furnace has to be serviced. You need room to replace the filter, and the door has to allow air for combustion if the furnace does not have an outside combustion air feed.

Old oil furnaces to be bigger compared to new gas furnaces. Measure the interior of the closet. Figure out how the combustion air was fed when the furnace was used. It is unusual to see an oil furnace in closet. I don't think the code allows this.

You should also remove the oil tank. If it underground then hopefully it is not leaking. If it is you could have a very expensive clean up problem.

Thank you both! I wrote a lengthy response and the ENTIRE post disappeared when my laptop refreshed or something. Ack! Now I have to try to remember what I had written......

Anyway yes, my daddy always told me - get three bids on any kind of work. I'd say for a big job like this, even more could be warranted.

The one guy I talked with so far is with one of the biggest local names, known for electric, now also into HVAC and plumbing.

He said to accommodate a mini-split the whole electrical panel would have to be replaced, along with connection all the way out to the meter. The panel would also have to be located outside the closet for new code reasons of clearance space. That's why it would be very expensive. But the panel as is would be enough for a gas furnace, and a water heater that's gas or electric, either would be fine.

I'm going to post this before it disappears again and continue......

........but there are other reasons I'm leery of a mini-split.

Besides an unsightly electrical panel on the wall, the north wall is concrete block/stone so tubing to a mini-split could not be run behind the wall. That wall is the first view you see when you come in the door.

But also, I'm leery of electric heat because of terrible experiences with baseboards. I don't think electric has the power to heat the place, and there's only so much that can be done to insulate when one wall is concrete block/stone and another is floor-to-ceiling single pane windows. I was paying higher electrical bills to try to heat that place than the house where I actually live that is more than 4X its size. And even with all the expense it was freezing down there in winter.

I figure gas would be both cheaper and more effective. But you're right, I need to get more local input. I'll try to get down there today and take photos of the closet where the oil furnace used to be. It may be so small that installation of a gas furnace would require moving the electrical panel anyway, which puts me back to major expense again.

@creekgirl, do you need air conditioning? Where is this? You don't have to be specific, state or province or climate zone would tell a lot. If you do need airconditioning, the choices may be more obvious.

I agree with the points above that you need to look at insulation. Roof and the wall to the carport in particular. Dealing with the main insulation issues may do a lot. (I'd also look into whether some simple solutions for the large window could help - heavy curtains for the coldest season, for example).

Newer gas boilers and furnaces can be quite small. Combi boilers that do hot water and heat the house are common in many countries, depends on what local professionals know, though.

Another thought: it may be possible to add/build a utility closet/room in the carport for gas appliance and hot water. I believe you said the wall there is regular framing and drywall, that won't be hard to modify, if there is room in the carport to add a small utility room, it may open all kinds of possibilities.

All I can add is that it is possible to insulate the interior of concrete block. I had it done using the foam type insulation. And you definitely should beef up the ceiling/roof insulation as much as possible, plus find out how best to insulate the crawl space.

I suppose it will not be in your budget, maybe not possible due to the way they are constructed, but replacing the large windows with double or triple pane insulated would pay off as well.

Drat, once again my whole post deleted. I don't know what that's about.

Anyway.......THANK YOU ALL! There are some great ideas here!

---combination gas boiler and water heater sounds really great! I hope it is do-able!

---it might actually be possible to add a little storage closet in the carport, if closets don't work out. Super idea!

Photo 1 - row of closets. The utility closet where the oil furnace used to be is on the left. The rest is clothes, etc. closet area with some built in shelves behind 4 mirrored sliding doors. Between the back of the clothes closet and the bathroom is where the hot water heater used to be. There are trap doors under both the utility closet and the hot water heater space.

Photo 2 + 3 - utility closet where the oil furnace used to be. As you can see, it is very narrow. The electrical panels are on the wall to the right. There's a trap door in the floor to the crawl space. Above there is a little space beneath the roof, looks like something got into the old insulation (squirrels?)

Photo 4 - small space between bathroom and clothes closet where water heater used to be. There's a trap door to the crawl space in the floor.

Of course it's possible to heat well with electrical. Thats just a foolish statement. If the place doesn't have enough service to run a small mini split that it would need, it doesn't have enough service to have a tenant use it. Does it even have a breaker panel? Or is it still an old fuse panel? There's no way a fuse box belongs with renters. They'll try to outwit a blown fuse and burn it down.

OK, 3rd request to reveal your location. A solution for Miami, FL is going to be very different from a solution for Calgary, AB. And I'm not buying the electricians upselling. It's not a $5000 job to run an electrical line to a 200 amp panel. Get a couple more quotes.

I'm sorry. I did write a post that included location and it disappeared. I keep having this problem with the website. Anyway, location is middle of the USA. Highs in summer sometimes up to 100 degrees, lows in winter sometimes down to 0 degrees.

Ellen Tracy - thanks! The frame standing in the carport is wire grid and it is original to the house. It is covered with decorative twig-and-vine squares, but those aren't original to the house.

Creekgirl will you need AC? I didn't glean from your location that bit of info.

I've got AC from a heat/cool window unit approx. 10 years old. It's noisy, it doesn't have a thermostat, it doesn't heat well and takes awhile to cool, but otherwise it is adequate for cooling.

It should be adequate for heating too. If you had proper insulation. Insulation is your issue. More so than HVAC.

Thanks for your input. What kind of insulation and where?

@creekgirl, you'll need to find someone locally, a professional, to look at the building and see what can be done. It will also depend on your budget, local skills, local code, etc.

There's naturally a trade-off between different approaches and what's feasible without doing a complete rebuild (or possibly considering a significant rebuild). Generally, more insulation is better, but at some point there are diminishing returns - doubling thin insulation may make a big difference, doubling thick, high-performing insulation may only make a small difference. "Extra" heating can compensate for mediocre insulation, but only to a point.

A few general points (all of which may depend on specifics):

-there are spots where extra insulation may be relatively easy to apply/add and make a big difference - for example, heat rises and attic/roof spaces more important to insulate well than walls.

-Insulating the floor may make a difference in comfort, possibly wasn't done.

-When improving insulation, there's a lot of focus on making the place 'tight' - i.e. reducing how much air flows out. This may make a big difference, but also may be a big job - depending on whether air loss is from smaller, easier fixes or re-doing large parts of the structure. (For example, your concrete wall is probably reasonably airtight, the woodframed/insulated parts and roof might be very leaky).

-Trade-off there is that different materials conduct heat more (wood less, steel much more, concrete somewhere in between). Insulation process is to both reduce air leakage and the conduction of heat outside. Your concrete walls might not be the best insulating material, but may also not be the biggest problem.

-It looks like the space has a high ceiling, heat may tend to accumulate up there (and cooler air down low), simple things like a ceiling fan may make a difference (note, in cold weather, you want the ceiling fan set to pull air up).

-Which brings us to the large front window: even if airtight, there will be heatloss through the surface of that large window. It may be very expensive to re-do that large window with double or triple pane (whether it's worth it is a different question), but I don't know, you'd need to get an estimate.

-Separate but important subject is that we 'feel' warmth and cold not just from warm or cold air but by heat radiating, i.e. you may feel the chill near that large window or cool concrete. Wall coverings or curtains can make a difference. Obviously they're connected - the air circulating does cool/heat the surfaces in the space, too, and a draughty space letting cold air in will affect both (surfaces cool faster if cold air flowing around). The relationship is not always straightforward - we feel radiant heat and cool/warm air differently.

It may help to sit down and make some notes about where it feels cold and use an infrared thermometer to figure out obvious issues. Also if you look around on the web, there are ways to suss out air leakage (but a professional will know better).

From the description of how it feels with the electric heat - cold even though the heat is cranked - there's a lot of all this going on. (Which is not surprising given the age and that it was designed for mostly seasonal usage).

To some degree, you can compensate for poor insulation with extra heat, but you'll need some help figuring out the right balance (both upfront and running costs). A pro can help you figure out which issues to deal with as highest priority. I doubt that just putting in gas heat will be entirely satisfactory - but that's just a hunch.

One point on electric: note that some of the suggestions here are for a heatpump (whether minisplit or other, possibly including the heat/cool unit you referred to). They use far less energy per unit of heat put into the room than your baseboard electric (resistance heat), because they're using heat from the environment ('upgrading' the heat from the air outside rather than just 'making heat') - but the efficiency falls when it gets very cold outside (well below freezing). That may or may not make sense, depending on other factors like insulation - but at any rate the cost of the electric heat from a heat pump may be very different (possibly much, much lower) than what the baseboard is costing you now, especially if you're getting insulation improved. The electric heat you have now may also be useful as supplemental heat (ie only in the very coldest weather), once insulation improved.

The utility closet seems very small. It’s hard to imagine an oil furnace once lived in there. The house currently has no water heater?

Argh. It happened again. I wrote a lengthy response to armoured's post and when I tried to edit before posting, everything I wrote disappeared! Must try to remember to SAVE before editing.

Anyway.........THANK YOU for the detailed analysis, armoured, and for sharing your obvious expertise! Some thoughts.....

---I made appointments with 3 HVAC professionals for next week, as well as a re-visit from the one I already talked to. Will also see if a city building department code inspector can drop by.

---there's a little space between the ceiling in the back half of the house (kitchen + bath) and the roofing where there appears to have been insulation. This could be replaced.

The front half (facing windows) is just beamed wood ceiling and roofing. The only way to insulate that would be with replacement roofing.

---the crawl space had insulation, but it is old and bedraggled. That needs replacement too.

Okay, I'm going to post this before it disappears, and then continue........

........continuing.......

---yes, regarding heat rising. That's a big reason I'd like to use the floor vents and crawl space duct work system, rather than wall-mounted mini-split. Also powerful forced air. With baseboards the heat seemed to go straight out the walls.

---there's a ceiling fan in the dining area, but a better location might be in the vaulted living space. Should rotation be reversible?

---the place needs cross-ventilation. There are transom windows above the big windows but they don't add much to air circulation. The front door has jalousies. There's a row of garden windows in the kitchen + bath I want to replace with windows that open fully.

---there used to be heavy thick drapes on the front windows, but they took up space and stained with condensation. More recently there were aluminum blinds that had a much neater modern appearance, but did not provide insulation. Would wood slat blinds be a good idea?

---absolutely agree about sealing tight! Besides holding heat, to keep out dampness. The place is next to a creek. Damp cold is the worst kind of cold. What kind of professionals do air leakage analysis?

---I'll be replacing the hot water heater. Would 30 gallon would be enough?

---the place was designed to be lived in full-season. My parents lived there for 7+ years while saving money to build the larger house on the property. Later it was rented out full-season, which I hope to do again.

For that house, it might make the most sense to do a roof over, turning it into a SIP.

Check with your gas and electric utility companies -- mine both offer low cost ($25) energy audits that include infra red scanning (shows gaps in insulation) and a blower door test (looking for air leaks); and then offer rebates for upgrades and fixes (including for things like a new furnace & water heater). Caveat, though, if you have deteriorating asbestos, such as asbestos tape on the ducts, or asbestos insulation, that must be sealed up or removed before they will do a blower test.

I'm not sure you want to bring that house to the attention of codes enforcement.

---good tip about energy audits, I'll look into that!

---I appreciate the point about code, but the house would have to pass a rental permit inspection if I rent it out.

---what is an SIP?

https://buildingscience.com/sites/default/files/2009-04-21-Builders_Guide_to_SIPs.pdf

http://blog.clemdesign.com/2016/12/a-usonian-style-house-built-with-sips.html

https://www.jlconline.com/how-to/framing/building-a-sips-roof_o

The condensation is definitely something to look into. Sounds like the place is quite leaky, and who knows what shape that insulation is in (it may have absorbed water and settled and basically be not doing much good at all). I'd guess the condensation is related to the leakiness, make sure to mention the condensation.

I'd suggest wait and hear what options are suggested before figuring out how you want heat ducted in. If insulation is taken care of, many of these issues (the feeling of the heat going out the walls? Well, it is...) may be resolved. Or at least a lot better. Heat rising within the high ceiling area - circulating around won't help if it's all leaking out.

And will make a huge difference in how big a heating set-up you need. I really doubt just throwing more heat at it would be satisfactory.

No advice, but following because I'm intrigued by the house.

Thank you. I'd guess the existing insulation is so old it isn't doing anything at all. What's the best kind of insulation these days?

Thank you for sharing your expertise, armoured. I'm amazed and grateful that you have put so much time and thought into helping with these decisions. It's people like you that make Houzz great!

Thanks, PegLee. I looked up photos of gas fireplace wall units. They're very nice looking! But there is an existing wood-burning fireplace.

Thank you! But given the location of the fireplace, it probably couldn't effectively heat the house no matter what it was burning. Which reminds me, unless duct work is extended to the bathroom and another floor vent put in there, the bathroom may need a baseboard again.

I'm afraid to even post these photos. You guys will probably tell me to just give up. A couple of years ago my boyfriend, a brave and kind soul, ventured down into the crawl space to take photos. The trap door is so tiny, only a slender person can get through. And the crawl space is only about 2.5 feet deep! A person would have to be a spelunker to install duct work or replace plumbing. What's more, it's gross......a dirt floor littered with tattered insulation, possible mold. At least the house appears structurally sound. But who is going to want to work down there?? Or is this expectable for an older house?

It's not like it will be fun, but yours is not the first house to have a crawl space - there are ways to do work down there or access from above. Wait and hear what the pros have to say. It may influence what work you have done and e.g. what type of insulation or even what type of heating (whether a few pipes to put in or lots of ducts or leave it and do some other way by avoiding going down there). It may be one reason they went with electric baseboards at the time, easier than doing extensive work below at a time when they didn't want to touch the flooring.

BTW you will also want to look at the fireplace and chimney. That can be another way for air to leak out. It may not make sense to keep it as a functioning fireplace.

Tuckpointing?

My house has minimal crawlspace. I had minisplits installed and although there is no ductwork, there were still electrical and fluid lines to put under the house. The guys had to dig trenches for themselves to get where they needed to be. Yours doesn’t look bad.

@creekgirl, you wrote 'tuckpointing'? Do you mean pointing the brickwork on the chimney? Well, shortform on fireplace - in old-style fireplace venting through standard chimney, as someone wrote above, very inefficient as draws in cold air, plus pollution in the house, there are safety issues, etc. And if the damper is not working well, you might be losing warm air all the time, even when not in use. You'd get the pointing done if the existing chimney was in bad shape, but not clear if that's the issue or would be enough (chimney rebuild?). If you're renting it out, do you want to deal with all those issues? You could put a fireplace insert in the fireplace spot - basically a wood stove - which often now requires direct air from outdoors - and they'd most likely run a metal chimney through the existing. Better in most respects but still, it has to be operated correctly with good quality wood; do you want this in a rental unit? Or a gas fireplace (closed, venting through the chimney) is possible, but would it be worth it to have another gas appliance for what might only be occasional use?

Keep in mind that depends on other heat. For a relatively small place, a good fireplace might be nice to have, but may kick out a lot of heat.

This is before even considering the code issues. By all means get it looked at, but it might not be worth it, and easier to close up the chimney entirely. I know a lot of people with fireplaces and fireplace inserts who use them rarely (like once or twice a year) or not at all.

(Note you may need the chimney to be looked at even if you're not planning on using - just to check for water damage/structural stability - but it's a different level of work if not planning on using it).

creekgirl, your hot water heater question about electric bs gas. If you end up running gas to the house, I think a gas water heater is the way to go.

And, consider a tankless whole-house gas water heater: Tankless saves you a lot of room (duh, I guess lol) as well as saving the energy to keep heating a big tank of water. Gas saves on energy cost if you're in a high electric-rate area.

Though tankless are much more expensive than tanks, your "whole house" is so tiny at 450sqft that the cost could lower than expected.

Your house is so cute!

good luck and hope this helps.

If you have enough money, you can find a way to effectively insulate anything. I'm sure that a spray foam on the floor underside would work pretty well, but...moisture, those pictures scream moisture, you would have to find a way to keep that space drier, and all the piping and vents/runs would have to be done first.

The big front window could be well insulated (relatively) with some polywood shutters or plantation shutters, but that isn't cheap, in fact a replacement double or triple pane might be cheaper. The trick I learned when renting a condo with bookend sliding glass doors, was a pair of plastic sheets in the winter. You secure the plastic sheet inside the window opening, but clear of the actual frame (where possible), and then use a heat gun/hair dryer to tighten it up. It turns almost invisible and really helps keep out the cold.

Thank you all! These are all good suggestions. It's a relief that the crawl space may not be as bad as I thought. I was checking out other discussions on insulation, and there seem to be many varieties, so that in itself may get complicated. I do hope to keep the stone fireplace functional. Covering the windows in plastic in winter is a good idea!

There are 3 HVAC businesses coming by today to have a look at the place. Will let you know what they say!

If you want to keep the existing fireplace functional, well, I understand - I love fireplaces and fires, just have learned that a lot of the time they don't make sense. On occasion we have a fire outdoors. But my suggestion would be to clearly define your goals. If you want to have a fire just once in a while for pleasure, then just make sure it's safe and not sucking out warm air when not in use. If you want it for proper heat, it's going to be a different cost level and complexity entirely.

Despite what might sound like my negativity on fireplaces, if it is basically in good shape and could be used once in a while just for pleasure, I'd probably keep it, too. Oh, and get some good dry wood (or lay some in to dry now). If the fireplace or chimney was in bad shape and I wanted to use it for heat, well, with gas available, I wouldn't, I'd just make sure it was well closed.

Again though if you rent you may have separate code and insurance issues.

Interested to hear what they say about the windows in front. I happened to look at the photos again, funny how your mind tricks you, I had in my head the image that it was one huge window. What you have with the four sections times two will be easier to work with and get double or triple pane. It might still be expensive and custom work, but I shouldn't think would require some super-specialist company. Do any of those windows open?

The stone wall at front looks great and esp with the fireplace inside. Only a guess but it's probably not your biggest issue insulation-wise, and if you really need more insulation there and along the rest of the wall, exterior cladding/insulation should be feasible and not visible from the front at all.

Stone and cement blocks aren't the best insulators (conduct/lose heat) but my gut is that likely not that bad, because at least should be reasonably airtight - and probably almost as good insulation as the day they were built. But quite curious to hear what the pros say.