All Forum Posts by: Joshua Harmon

Here in Searcy I love to pay utilities on my units. On my 1/1 apartments I charge an extra $150 a month for utilities paid option. Water always runs 43$ which is the minimum and electric rarely goes over $80 on the upstairs units and usually stays below $60 on downstairs units. I'm making a killing paying utilities. I've even thought of getting rid of the separate water meters to bring my bill down, right now I pay a minimum for each unit, I would save about $250 a month on a single meter.

Sounds like you have a nice system going for you. I will explore this option as well since the rents are about $75 under market rents.

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Originally posted by @Salvatore Lentini:

@Joshua Harmon and when you implement RUBS for water you'll save on your sewer bill since tenants (studies show) will be more conservative with their water usage once they are paying for it. Sewer bill is usually based on water usage. So you'll get a 2 for 1 savings.

I definitely agree.

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Originally posted by @Mike Vann:

@Joshua Harmon I feel your pain!!

We should definitely connect. I have a few deals in my pipeline that we could partner on.

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Obviously, the goal of owning buy and hold real estate is to maximize cashflow and NOI. I have a 41 Unit Apartment Complex that I'm analyzing that has great potential but it has one issue, the WATER BILL. The water bill runs about $2,000 monthly and $24,000 annually. That equates to 13% of our monthly cashflow being eaten up by just water.

My market of Fort Smith, Arkansas (also known as the River Valley) is pretty consistent with owner's being responsible for paying water. It seems to be the biggest burden for Apartment owners in my market, and the city is continuing to raise the water bills every few years.

My question to you guys is, should I explore RUBS/submetering although everyone in my market is getting destroyed by their monthly water bills? Who in the BP community has implemented this strategy? What was your experience?

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In search of partners on an 8 Unit Apartment under contract for $175,000 w/ value-add opportunities.

Fort Smith, AR.

This deal appraised at $235,000 2 years ago.

Currently, Rents at $425 per unit w/ potential rent growth to $440 per unit.

Property currently Cashflows $2975 per month and we could realistically bump that up to $3080 per month at 88% occupancy.

Click here for more detailed info on this deal.

Give me a call at 479-650-3909 or email [email protected] if interested.

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All Forum Posts by: Joshua Harmon

Joshua Harmon has started 4 posts and replied 15 times.

Post: Implementing RUBS/Submetering in Apartment Complexes

Post: Implementing RUBS/Submetering in Apartment Complexes

Post: Implementing RUBS/Submetering in Apartment Complexes

Post: Implementing RUBS/Submetering in Apartment Complexes

Post: 8 Unit Apartment 9.3% Cap Rate