Multi-family "all bills paid"

[Jon Klaus]

Almost everything I've heard on master-metered properties (Landlord pays electric) is negative. Typically, it's an older property with lower income tenants. The electric bill is the landlord's biggest expense. Since the tenant doesn't pay the bill, electricity is more likely to be wasted. I.e. AC on in the summer, but windows are open. Or heat set on 78' all winter. Investors seem to run from these properties.

On the other hand, the purchase price of these properties tend to be lower. As much as $5-10K a door lower than a comparable individually metered property. Is it worth it at a certain discount? Yeah, it depends on the numbers, but what would make you consider an "bills paid" deal?

You could do a cap-ex project to convert to individually metered. Anyone know how much this typically runs?

Anyone have one of these properties? Are you happy with it? What else have you learned?