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Multi-Family and Apartment Investing

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Jared Christensen
  • Cedar Rapids, IA
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Free utilities?

Jared Christensen
  • Cedar Rapids, IA
Posted Dec 9 2014, 07:43

As I do research on owning rental properties, I'm trying to figure out how so many of the rental property owners in my area are managing to make a profit while offering free heat and water to their tenants. After doing the math, unless you own the building outright with zero debt, I just don't see how you could be making very much. On a 2 bedroom apartment, heat and water could easily be $100/month per unit, especially if the windows are old and the furnace is not newer.

How are these guys making money? Or is that the reason so many apartment buildings end up for sale; the owners went broke giving everything away for free?

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