Need opinions of experienced investors and landlords

[Lakshay G.]

Hello,

I'm fairly new to bigger pockets and in fact fairly new to real estate investing. I'm currently looking at a multifamily property to purchase and the numbers are looking good. According to 50% rule or 1 and 2% rule, it's all making sense. But I do have a few concerns.

The property is 100 years old. I walking in every unit and it's in decent shape, of course it does need some cosmetic work done and simply needs some love and attention. However, this is a 6 units building with 1 commercial space (not very big) and has OIL HEATING. From what I have been researching, oil heating is very expensive form of heating and is not paid by tenants. The electric bill is paid by tenants but water and heating bill is paid by the landlord. I know oil heating can be converted into gas heating and it wouldn't be as expensive as oil.

My fear is that I haven't dealt with oil heating in the past and it may cost me at least $4000-$6000. My comfort zone is properties built after 1950s and this is why I'm hesitant about this building.

I repeat (to the best of my knowledge) the property is in good shape considering it's 100 years old but I'm just hesitant to jump in and buy it. Currently it's fully occupied and average yearly utility bill is over $9000 and this includes water, oil, and electricity.

Any suggestions and sharing will be appreciated. Thank You.