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Updated almost 8 years ago on . Most recent reply
Multi-family investment: Convert electric->gas heating solutions
We are trying to purchase an apartment building right now but the problem is the hydro costs. The property was built in the 60's in 3 phases and according to the owner there is a possibility to change the electric heating system to gas for an estimated cost of $300,000. Does anyone have any solutions to convert from electric to gas in a concrete building? Any thoughts on the purchase as well would be appreciated.
Operating
expenses/year
Income / year
Total
Rental income
$655,249
$655,249
Laudry income
$36,000
$36,000
Parking income
$18,000
$18,000
Effective income
$709,249
$709,249
Property tax
$92,523
Property Insurance
$14,565
Water/sewer
$30,000
Gas
$20,000
Advertisment
$1,100
Office
$5,100
Professional fees
$2,713
Property managment fee
$18,000
Waste management
City
Hydro
$170,000
Maintenance and repairs
$36,968
Snow removal
$4,000
Total
394,969
$394,969
Net operating income
$314,280
Cap rate
about a 6% cap