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Your state, city, or even homeowners insurance company may have requirements on how far the outdoor wood furnace should be from the house, so be sure to abide by those regulations. In general, you should install an outdoor wood furnace or boiler as few as 30 feet or as much as 500 feet from the house or any other building.

The disadvantages of a wood-burning stove include a slow heating time and the effort required for fuel. It can take about an hour for a cold stove to produce noticeable heat. Additionally, homeowners must source their own fuel by buying or chopping firewood, cutting it to the appropriate size, and storing it in a dry place. The fire also requires regular attention, as you'll need to add more logs throughout the day.

Gas-powered fireplaces seem to be the most desirable type for homebuyers, per a Redfin report on homebuying trends. That said, any fireplace that has been maintained well and is in safe, working condition could be a draw for buyers, regardless of whether it uses wood logs, propane, or electricity as fuel.

Wood is classified as either hardwood or softwood. For firewood, hardwoods are generally the best choice as they tend to burn longer, hotter, and produce less smoke than softwoods. Recommended hardwoods include oak, hickory, maple, cherry, ash, beech, birch, elm, and walnut. Oak is a particularly good option as it's widely available, slow-burning, and doesn't produce much smoke or sparks. Some woods, like oak, hickory, and cherry, also emit a pleasant scent. It is best to avoid softwoods such as eucalyptus, poplar, and willow, as they create a lot of smoke and have a high moisture content that makes them difficult to light and burn efficiently.