Hello everyone, I am new to Biggerpockets and the world of rental properties. I have an accepted offer to purchase a 4 family in Taunton Ma. There are 3 two bedroom units and 1 3 bedroom unit. I was budgeting for 300/ month for water/sewer which I thought was reasonable until I called the water department. The woman I spoke with through the city of Taunton water department, told me that this property was averaging $2400- $3200 per quarter when it was fully occupied in 2017-2018.. This seems unreasonably high to me. I have contemplated the idea that maybe there was a leak and that's why the bills were so high. The inspection is scheduled for this thurs 5/23. When I crunched all the numbers it seemed like a good investment until I put in an average monthly water/sewer bill of 800-1000, which tanked my COC return down to roughly 5%. Does anyone have any suggestions or comments regarding this?
Property Manager · Lancaster, PA · Member since 2016 · 72 posts · 75 votes
7y
Sounds like you have a leak or a toilet that won't stop running. Doesn't matter if the place is fully occupied, tenants will ignore the obvious issue if they aren't the one who has to pay the bill.
That's what my thoughts were Austin.. I will have the inspector look closely at the plumbing and toilets.. Hopefully we find a simple solution so I can move forward with this deal.. Thank you for your reply..