First Home- Electric heat in Northeast?
I am making an offer on my first home that I plan to use as an owner occupied rental.
It is a 3 unit building in downtown Albany, NY. The three units are as follows:
-Basement studio leased for 550
-1 bedroom appt leased for 650
-2 bedroom appt leased for 950 (I intend to live in this unit)
So total rent coming in would be $1200 plus $400 or so more if I rent one of the bedrooms to a friend.
I am offering $130k and financing through an FHA with seller concessions, making the monthly payment $1,256.
I think this is a good investment, as I will cover the mortgage while there and can fully rent it down the road and net ~$900/month.
My main concern is that there is electric baseboard heat in all units (separately metered). Some people have advised me that in cold upstate NY winters this is a deal breaker, as renting will be difficult with huge utility bills. Gas is not run to the building, so converting would be cost prohibitive.
I would plan on ordering an energy audit and insulating any problem areas to help control costs, but not sure how much this would really help. Does anyone have experience working with electric heat in cold climates? Is this really a deal breaker?
Any advice is greatly appreciated!