This cold house

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Thanks for the information about the code. It's something I definitely need to look into. We don't generally park the car in there and that is a diesel, and we keep all the flammable stuff in the shed but that is no excuse to not be up to code.

I was not done in the picture and I have done my best since then to fill in gaps but I think in that space it's hard to get everything perfectly.

Redoing the basement would be great but right now doesn't seem worth it since we do not use the basement, so hard to justify spending money down there. The other thing is my wife thinks we're going to be in this house for just a few years and I have a feeling it's going to be a lot longer than that unless we win the lottery!!!

What I would like to do is put the Rinnai in the living room (above garage) where it is always the coldest. The other rooms seem to be doing just fine after I spent a good amount of time sealing the central HVAC system.

I am not sure what the cost and return on investment would be if we put in a new boiler for the steam system vs. the now-better-sealed forced hot air system in 5-8 years.
 
Have you considered installing ceiling fans to circulate heat? My stupid McMansion has cathedral ceilings with roof only vents, and if I don't run the ceiling fans in reverse mode then we are freezing while there's a nice, warm layer close to the roof. The fans in reverse mode draw air up the middle which forces the heat down the walls, and helps make things more comfortable. Not comfortable enough since we keep the house at 70 degrees in the winter, but moreso than having all the heat keeping the ceiling warm.
 
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