Tenant pays gas and electric. 

The consensus locally was a sentiment that gas prices are up and inflation is high and they are hoping people will book last minute to see if costs go down and they just aren't booking as far out in the future.

Since they have a low reserve for security deposit, high late payment rates and no metered utility, electricity or gas, I offered $3,000,000.

I created a spreadsheet and increased utilities by a set percentage to see what the average per month utility bill might be if the average oil goes up 50%, electricity increases by 20%, gas goes up 30% and water up 10%.

One unit has a gas water heater that has been recommended to be upgraded to an electric one for ease of utilities.

@Matthew Rota a couple of things to think about, you'll need to take care of all the areas of the house that create it to be habitable right away (i.e. roof leak/repair, furnace/AC repair, plumbing, Gas and electrical). 

Recently I have been looking at bringing all the project experience from the oil and gas industry to the real estate world.  

The gas and light bill for your personal unit are not business expenses. 

Rental value increase through renovation, fixing deferred maintenance items, switching from oil to natural gas (Reduce expense, not sure to what extent yet)

Hi @Deborah Braund, I help Action-Takers Create Wealth and Passive Income Through Smart Real Estate Buying, Selling and Investments.I am a Houston based full-time Investor-Realtor (Investor-Agent) and Buy & Hold Investor with an Engineering background in the Oil & Gas Industry.