Duplex w/ Steam Boiler + Owner-Paid Gas — Deal or Headache?

Question

Hi everyone — would love some input from investors who’ve dealt with older heating systems.

My sister and I are under contract on a duplex in Cleveland (~$180K) that cash flows ~$500/month in a solid area. However, during diligence we uncovered some concerns with the heating setup:

• One steam boiler heats both units
• Only one gas meter → likely owner-paid gas
• Downstairs unit reportedly runs very hot even when “off”
• HVAC tech confirmed this is typical for steam systems (limited control)
• Prior tenant used electric heat to compensate and had a very high electric bill (~$1K/month)
• Inspection also flagged active leaks in the system

We’re waiting on 2025 gas bills to understand actual costs.

Our dilemma:

We plan to hold 15+ years, so we’re weighing:

Pros:

• Strong cash flow
• Good location

Cons:

• Owner-paid utilities
• Ongoing maintenance (boiler, valves, leaks)
• Tenant comfort issues (overheating)
• More operational complexity vs. a “clean” duplex with separate furnaces

Questions:

• Have you owned steam boiler properties like this — did overheating become a recurring issue?
• How do you approach owner-paid gas in shared systems?
• Would you consider this a manageable quirk or a long-term headache?
• Would you move forward, renegotiate, or pass for a cleaner asset?

Appreciate any insight — trying to determine if this is a solid deal with some quirks or unnecessary complexity long-term.

Dave Stokley · Answer

I own a 4-unit in Lakewood and all four units are heated by the same single boiler! To add to the fun, all four units are short-term rentals. Surprisingly, we get very few complaints about the lack of individual climate control.

Drew Sygit · Answer

Steam boilers are rarely sold anymore due to the potential scalding via radiator leaks.

See if electric solenoids can be added to give each unit temperature control. May need some bypass piping to make it work.

Your other option is to just rip it all out and install either; separate gas forced air furnaces (1 in basement, 1 in attic) or electric baseboard heat.

We've done both and now lean towards the electric baseboard:

1) Doesn't get stolen like furnaces!2) Given you have boiler currently, electric baseboard will be easier to install than all the ductwork needed for a forced air furnace.

Richard F. · Answer

You mention "older" steam system, so yes, they are often temperamental, needing frequent status checks in frigid weather; prone to causing a lot of frozen pipes if they shut down and no one notices or responds soon enough; heating of units will be very uneven, and highly dependent on amount and quality of insulation and thermopane windows; they are dangerous in the hands of unqualified personnel, and the Pros you need to hire are costly and in limited supply, so hard to call out for service when systems across the area are stressed due to excessive cold or power outages. As far as the gas bills, check your area, but not very popular in cold, drafty, inefficient units. Typically you should be using additives to the water system to treat for mineral buildup and prevent corrosion. Radiators are notorious for drips that damage floors, and suffering from "air locks" where they do not heat up all sections.

Modern steam/hot water systems are marginally better, IF all piping and rads are new, which they often are not.

Duplex w/ Steam Boiler + Owner-Paid Gas — Deal or Headache?

Duplex w/ Steam Boiler + Owner-Paid Gas — Deal or Headache?

Our dilemma:

Questions:

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Our dilemma:

Questions: