Splitting Utilities increase the ARV

[Gareth Fisher]

Im currently doing a BRRR on a duplex. It was a 2-1 br units. I added a br to the top unity by converting the attic. New paint,carpet etc since it was trashed. I was planning on adding 2 separate gas meters and 2 gas boilers. Currently the landlord was paying oil heat. My dad argued that spending the 10k to do this was a poor decision. He said it wouldn't increase the value and I could just pro rate and charge the tenants. My original plan was to split the utilities and spend the 10k, thinking that it would increase the value of property due to the higher noi.

Would you guys agree that it would increase the value of the property?  

I purchased it for 76.5   

I had about 3 in closing costs,

I have about 8-9k in the 2 br conversion rehab.

and would need to put another 10k into it to split the heat.

I hope the ARV will come out to 115

So it seems like splitting the heat should be a good idea.  

Any thoughts?