"Jason" wrote in message
oups.com...
Hello,
I am investigating the possibility of installing a
ductless split AC system in my small apartment (665 sq
ft).

My question is whether the "outside" unit of the split
system needs to be outside or on a roof? Can it be in
the utility closet which currently houses the furnace
and water heater?

thank you for any feedback,
Jason.

Yes the condenser must go outside. Location to be determined by the unit
and installation needs.
Other wise your just moving the heat from one room to another instead of
removing it.