RUBS, utility fee, split?? for a 6-plex
We're quite close to making an offer on a 6-plex where owner pays ALL utilities. It is not common in the area for utilities to be included, and all units are under market rent. The building is 100+ years old, so I assume that the cost of splitting the electric/gas/water would be astronomical. There are lots of people saying that only novices buy properties where utilities are not split... and that has me a bit scared. I'd like to implement RUBS (ratio utility billing system) for electric/water/trash, but it's illegal for electric in my area. so that leaves me with either the expense of paying the electric bill, again, assuming that the cost to rewire separately is prohibitive.
Semi-conservative analysis puts cash flow at $272 as-is (including property management).
Should I:
1. NOT buy it
2. Plan to implement RUBS
3. Plan to add a utility fee
4. Plan to spend the rehab money on splitting electrical (possibly instead of adding an attic apartment) ...
or some other solution that I haven't thought of? Thanks in advance!