Minneapolis, St. Paul, MN Utilities

[Victor Lebegue]

Hello everyone,

I looked at a 2700 sq. ft. property today and I need some advice on utilities. I'm trying to break down expenses to get an idea of cash flow every month. Currently the building is vacant. It has 8 units 4-1bd, 2-2bd, 2-3bd all 1 bath. The heat is natural gas with the old style hydronic radiators. I can't remember if the water heater is natural gas or electric. I'm new at investment properties and was trying to take in as much as I could on the extensive remodel. Currently there is only 1 meter for the whole building. I'm looking at general utility costs for this size building in our area. Also, is there any way to seperate the meters? If so the common areas would be 3 flights of stairs and a laundry room in the below ground basement area. 

Any help is appreciative

[Deanna McCormick]

Use address contact Centerpoint Energy for previous cost and use on Gas,  and City for report on previous use for water.. you should be able to get like the last 3 years of billing to see what costs were. If not separate for electric also contact Xcel for electric costs

Have a boiler company inspect boiler before you buy.. make sure it's running and all radiator are functioning properly. or baseboard what ever type it has.

From the costs you should be able to gather the average for utility costs,, if it were me I'd average it out and check what is expected for utility cost increases,, google that.. and you'll have what you need to be able to add the costs to the rent base..

Not such a bad thing ,, we operated a 6 plex , a 5 plex and all utilizes were included in rent.. we kept boiler at set temp all winter, had boiler guy set up a thermostat we controlled.. in boiler room only we had access to.

Just realize all HUGE buildings like 12 units to 100 units rarely have separate meters for anything,, owners pay heat, water and electric.. so it can be done.. 

One thing to watch and inspect apartments for is water leaks,, and you'll pay close attention to meter for that.. we'd inspect early like 5 am,, to see if meter dial was steady,, no leaks in not we'd post call us if you have a leak,, otherwise we'd inspect and figure things out for ourselves.