HUD Fourplex

[James Syed]

Hi BP,

I'm getting ready to submit an offer for a HUD fourplex. They are all large 1 bedroom units. One bedrooms in this area are going from $400 to $500. I am guessing that water and heating was paid by the last owner as I found one huge water heater and two furnaces during my physical inspection.

If I have to pay water and heating for all units plus common area and my rental income is $400 per unit, that will be a BAD investment. Am I right?

My question is, how much will it cost to install 4 water and gas meters? Would I need any special permit from the city water department?

It's a HUD owned fourplex.

Any suggestions would be appreciated.

[Mark Ferguson]

what's your purchase price? Hard to know of it is a good deal without that. I would imagine you will need permits to install those and the cost would depend on the current setup. How old is the property, is the current venting up to code, plumbing up to code etc.