Split heat vs. landlord paying?

[James Suessmann]

Purchasing a 2 Family that Landlord pays heat with one single boiler for both units. Intentions are to purchase, add boiler and split heat to allow tenants to pay. Question: will this have a positive affect I were to sell in the future? Would it be over and beyond the actual heat cost? Will it be more attractive to buyers?

[Dan Bryskin]

@James Suessmann, so you are taking your duplex from making 2800 to 3205, reduced your expanses by 305 generating additional $705 a month. That's an additional 25% return.  That's great.  You can calculate your purchase cap rate and see how price will change based on 25% increase in revenue, but reality of it - duplexes are appraised based on comp approach not on cap rate. If you duplex performs better then market, you will get some money added to your appraisal, but comparative sales by enlarge will determine your sale price.  Hope that helps.