Separating utilities in Manchester, NH multifamily builds value!

[Ryan Weiss]

You will not believe how much value was built by separating the electrical in this five-unit building.

This five-unit property was purchased with the plan of increasing income, reducing expenses, and then refinancing (BRRR). One of the strategies we came up with was separating the electric and charging it back to the tenants. Check out these numbers:

Monthly Electric cost before separation: $450
Total Project cost to separate electric: $9,500
Project electric cost after separation: $100
Net monthly savings: $350
Net annual savings: $4,200

If you apply a 7% Cap Rate to the annual savings of $4,200 we are looking at a $60,000 ($4,200/7%) increase in the property value! Well worth the $9,500 spent.

We love taking on and discussing these kinds of money saving projects! DM us if you'd like to discuss more. Have you ever tried to use and other utility saving strategies like RUBS (ratio utility billing service)?