Utilities killing the deal

4 Replies

Hey Fellow Investors, I am just starting out and looking to buy a Fourplex with an FHA loan to househack and get the ball rolling. The deal is a 2% deal in a C class neighbourhood within 2 miles of walmart and other usual big box stores. The problem is the utility (landlord paid) is 7000$ !! Which is killing a otherwise perfect deal. Can anyone suggest some creative ways around this? I do not think i can raise the rents (maybe 25 per door) But that still wont cover it. Thanks Nick

If that includes electric and gas you’d have to sub meter most likely. Water and sewer are sometimes covered by landlord no matter what. Just depends on the area

Not sure how 7,000$ is possible. We'll say:

300$ electric

100$ sewer/trash

200$ water

100$ gas

=700$ x 4 (4 plex) = 2,800$