Duplex with one address and one meter.

[Michael Maloney Jr.]

Hello there BP, I'm in the process of analyzing a duplex deal. I've done the numbers and used the BP calculators,(which are amazing btw). Here is the gist of it, at the purchase price of 90,000$ with a 10% down payment and and estimated 1000$ in repairs I came up with 1501.41$ in total monthly costs including principle and interest, and a total gross rents of 1600$/month. So that'll be roughly 98.59$ in cash flow for the two units total. Seems pretty skinny right.... The seller owns the property free and clear. He was renting the one side out to a very long term tenant I believe for 15 years or so for 650$/month, way under market rents and the other side he was renting to his son, but is vacant now for showings. The property has only one address and one meter so that tells me he's paying utilities. I averaged over the year roughly 200$/month per side. In my case this isn't going to work at a skinny 98$ in total cash flow, for two units. My question to you, is how can I go about splitting the units up with two different addresses and go ahead and sub meter it? Roughly what would the costs be to do it? I could then rent each unit at 800$/month and they can put utilities in their name and my cash flow will make more sense. Thank you in advance. -Mike