Cheap Tri-Plex w/ High Utility Bills

[Shaye Mora]

My godfather owns a tri-plex that he is looking to sell to me for a price of $65,000. The property needs roughly $15,000 in work, bringing the total all-in number to $80,000. The property is in a D class area and the tenants will not be the best, but it seems that long-term tenants find their way to his property. 

Total Monthly Income: $1,500

Mortgage, Taxes, Insurance: $540

Utilities (12mo avg.): $330

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Gross Income: $630 / Month (Not Including: Vacancy, Maintenance, or Management/CapEx)

Is this a property worth investing in?  

Is it worth dealing with horrible tenants in a bad neighborhood for the cash flow? 

Is it worth investing the money to split HVAC units in 2 units and increase cash flow?

Respectfully,

Shaye Mora 

[John Underwood]

First and lowest cost is to get 2 more water heaters so that each unit is paying for their own water and electric to power the water heaters. See how expensive it would be to get separate meters for each unit and maybe start with the cheapest option and convert the other utilities to separate meters as you can afford it.