All Forum Posts by: Kevin R.

@Thomas S. This might just be the sad reality I have to face. Appreciate the feedback...

@Account Closed - mini splits w/ AC and heat pumps are definitely my preference. I kind of just accepted the prices I was being quoted - I figured it just cost thousands of dollars to run the electric and refrigerant lines to each unit.

@Troy Sheets @Jonathan Andersen @Lucas Pfaff @Ethan Giller @Michael G. - I'd be interested in hearing if you guys have any opinion on this. I know most of you seemed to be in the "install three gas furnaces and central air and call it a day" camp on the previous thread I posted about this, but I'm hearing that that solution would be just as expensive, if not more, than these other options.

@Account Closed - forgot to mention that the total square footage of the building is 2,550, so it's about 850 square feet per unit.

@Account Closed - thanks for the thoughtful response. I'm curious to know what type of solution would require only $2,000-4,000 per unit to install new heating systems? Let me try to give some context - perhaps that will help us to get on the same page.

The issue with zoning my current steam heating system is that it would require us to run individual return lines from every single radiator (at least 15-20) down to the boiler(s), which would require a lot of labor. Also, you'd have to account for the cost of two new boilers, installing electric, individual thermostats, running separate gas lines to each unit, etc. as well. Keep in mind that it's an old building (built in 1925) with plaster walls, etc. that are harder to get through than drywall, and the cost should start to make more sense.

I've also gotten quotes from multiple vendors including a family friend and HVAC guys who were highly recommended here on BP for a variety of other options including AC/heat pump mini-splits (cheapest quote was $10,500 per unit), redressing the steam radiators for hot water using a 97% wall-hung unit (cheapest quote was $7,700 per unit), replacing the steam boiler with a hot water boiler and zoning it for the three units (cheapest quote was $13,550 plus thousands more for any broken radiators and/or water line issues), and replacing with hot water baseboards with three separate boilers (cheapest was $22,500). I'm even considering installing those hotel-style PTAC heating/cooling units, but even that is gonna run me over $10,000 when you factor in the electrical work that needs to be done to power those things.

All that to say - I would love to be wrong about this, and it really only will cost a couple grand per unit to fix, but everything I've seen points to that being a pipe dream, unfortunately.

In my neck of the woods, multifamily landlords generally pay for water and pass on electric and gas to their tenants. The triplex I have under contract technically has separate gas and electric meters for each unit, but in reality, gas is not split since the home is heated by a single steam boiler. Zoning each unit separately for heat would cost anywhere from $15-30K depending on which approach is taken.

I keep reading about how it's important with MFHs to sub-meter all utilities except water, but I'm having trouble justifying paying all that money when I can simply split the gas bill evenly between the three units (or use a method based on square footage or number of occupants). I would be sure to (a) make sure prospective tenants are aware of how I will split utilities, (b) put appropriate language into the lease to cover my butt, and (c) send out a copy of the gas bill every month to my tenants to be as transparent as possible. Am I overlooking something here?

This is actually something I've been wondering about as well. As you've stated, my experience in Philly has been that any duplexes/triplexes that are worth pursuing are way overpriced. I'd love to be able to buy a plot of land and simply custom-build something from the ground-up if it's going to be a similar price as buying an existing MFH that I'm not 100% in love with.

Hi everyone. I just had an offer accepted for $230,000 on a 2,550 sqft triplex in Philadelphia which was built in 1925. The inspection turned up the following issues. Which of these do you think I should push to have the buyer cover?

• The main water line is lead. Per the inspector, lead in the main water line can leach into the drinking water and cause health problems. The inspector recommended a water quality test as well as replacement of the main water line.
• Severe corrosion was noted in the house main electric panel and at the lug connections in the main panel. Per the inspector, this creates a potential fire hazard. The inspector recommended that a licensed electrician fully evaluate the electric panel and replace the panel as necessary.
• The 30A circuit at the main panel is run to 20A wire in the junction box above the panel. Per the inspector, this creates a potential fire hazard. Three hot wires share a common neutral wire in the main panel and in the 3rd floor subpanel. Per the inspector, this also creates a potential fire hazard. The inspector recommended that a licensed electrician fully evaluate the electric panels and wiring throughout the building and correct all overfused circuits as necessary.
• The ground and neutral wires were connected on the same bus bar in both unit 2 subpanels. Per the inspector, this creates a potential shock hazard. The inspector recommended that a licensed electrician evaluate the subpanels and properly separate the ground and neutral wires.
• Plumbing issues. When the realtor turned the water on the other day, there were various leaks inside and outside the home. The inspector recommended that a licensed plumber evaluate the water lines throughout the house and eliminate all leaks as necessary.
• Per the inspector, the steam boiler does not appear to have been properly maintained and may not function properly. A significant amount of debris and corrosion were noted in the sight glass and at the low water cutoff. The inspector recommended that a licensed HVAC contractor fully evaluate and replace the heating system (and any damaged radiators) as necessary.
• Per the inspector, the electrical system does not appear to be properly grounded. One of the ground wires was run to the water supply line, but the main water line run to the house is lead (which is a very poor conductor of electricity). The other ground wire is loose and not connected to a ground source. This creates a potential hazard in the event of a ground fault. The inspector recommended that a licensed electrician correct the electrical ground in the building.
• The electric service entrance cable is frayed and deteriorating. Per the inspector, this can allow moisture to enter the SE wire and corrode the meter bases and/or the main panels. It also can create a potential shock hazard. The inspector recommended that a licensed electrician replace the SE cable.
• Severe corrosion and cracking were noted in the cast iron drain piping in the basement. The inspector recommended that a licensed plumber fully evaluate the DWV piping throughout the house and replace the damaged piping as necessary.
• Per the inspector, the water heater shows signs of severe corrosion and appears to be at the end of its expected life. The inspector recommended that a licensed plumber fully evaluate the water heater and replace the system as necessary.
• Aluminum siding was used as a roof covering above a bay window. Per the inspector, this is not a proper roof covering. Wet moisture staining was noted on the ceiling below this roof indicating that this roof is currently leaking. The inspector recommended that a licensed roofer replace the bay window roof, eliminate any active leaks, and remove and replace all moisture-damaged building materials as necessary.
• The brick is bulging and shows signs of movement above the basement exterior door. Per the inspector, the brick is vulnerable to future movement or damage in this location, and he recommended that a licensed bricklayer repoint and repair the damaged and bulging brick as necessary.
• Severe corrosion was noted at the steam distribution piping next to the boiler. The piping appears to be damaged and may be leaking. The inspector recommended that a licensed HVAC contractor fully evaluate the distribution piping and replace any damaged piping as necessary.
• A few windows do not stay up on their own. Per the inspector, this creates a potential safety hazard. One window is cracked. Another dual pane window appears to have a failed thermoseal at the middle window. Fog/condensation was observed in this thermopane window. The inspector recommended that a licensed carpenter fully evaluate and correct or replace the defective windowpanes or windows as necessary.
• Fire alarm system is required by law for multifamily properties, so we need to ensure that it is functional.

Thank you!