I have been looking for some time to buy an investment property. 2 units don't come up very often in our area. One was listed just this week and I quickly went to go see it. It is an older house and currently has a 2BR downstairs and a 1BR upstairs. However while looking at it, I noticed that it only has 1 electric meter, 1 gas meter, and 1 water meter. Upon further discussions with the realtor, it has come full circle that the unit is still registered as a single family unit. So to do this right, I would need to put in separate electric. I could include heat in the cost of the rent as it only has one furnace. The water will likely require a second meter and while the sewer does not require a separate system, the sewer authority says I would have to still pay a $2,900 tap on fee, but nothing would physically need to be done - they just want to collect the fee.
I also called the tax assessment office. They said they will not increase the tax assessment unless I add square footage to the property such as an addition or a storage shed.
I'm assuming there are other pitfalls I should be looking for here? Any thoughts or advice are greatly appreciated.
In my area, the house needs to be zoned as a two family, otherwise is an illegal duplex. Find out if you need to get it rezoned as that may be a deal breaker.
You only need one water meter. NEVER let tenants be responsible for water, because the only person who is impacted if it doesn't get paid is YOU (attached to tax bill). Most buildings have one water meter. I would hesitate to rent this as a two unit because one city inspection can cause you a lot of problems.