Updated over 7 years ago on . Most recent reply
How are utilities billed in a small apartment building?
I'm considering doing 1031s out of a few SFH on the west coast and purchasing some small apartment buildings. In researching different markets I find deals like this:
http://www.loopnet.com/Listing/5175-Warrensville-Center-Rd-Maple-Heights-OH/11817181/
But utilities, if not billed to the tenants, would seem to eat up a lot of the cash flow. Like in this property of about $45k gross annual rental income, utilities would be about $5k. The units are separately metered. I've never leased an apartment and am not really familiar with how utilities get billed in them. Or does that vary per market?
Any other thoughts on this property as a deal or not are welcomed as well as I'm still determining what to look for myself.



