Multi-Family- 4-plex Utilities?

[Chris Dickey]

Looking at my first multi-family today (4 plex).  Got a copy of the rent roll and it appears that the current owner is paying all utilities (water, electric, garbage etc)....cutting into a major chunk of the monthly cash flow.

Is this standard practice?  

[Thomas S.]

There are quite a few multi units out there that do not have separate utilities for each unit. They are purchased usually buy novice investors that have no idea what they are doing. I would strongly advise passing on any multi that does not have utilities in the tenants name unless your offer accounts for the cost to install all separate utilities when you take ownership.

Leave those properties for novice landlords to pay for their tenants utilities.