The only shared utility is the hot water . 

Think about the cost of an A/C system or a hot water tank.

Basement was 1 bed /1 bathCurrent Unit Breakdown: 4 Bed/2 Bath for all units.Changed occupancy to a Legal 4-unitSummary:Purchase Price: $1,550,000Rehab: $385,000ARV 4 Unit: $2,500,000 Equity Created: $500k+Projected Monthly Rent Roll: $17,500/monthProjected Monthly Cashflow: $3,328/monthLessons Learned:During a gut rehab of a multi family, you can sub meter the water to each unit.

Basement was 1 bed /1 bathCurrent Unit Breakdown: 4 Bed/2 Bath for all units.Changed occupancy to a Legal 4-unitSummary:Purchase Price: $1,550,000Rehab: $385,000ARV 4 Unit: $2,500,000 Equity Created: $500k+Projected Monthly Rent Roll: $17,500/monthProjected Monthly Cashflow: $3,328/monthLessons Learned:During a gut rehab of a multi family, you can sub meter the water to each unit.

During a gut rehab of a multi family, you can sub meter the water to each unit.

For example I had one lender allow 35% and another was cool with 70% ...which means a lot more that I could qualify for.That being said, don't bite off more than you can chew and spend it all obviously.

You going to manage yourself 10%, screen the tenants (between 1/2 and 1 month of rent for placement) fix the plumbing (hot water heater goes out $800), toilet clogs $150.

My interest in Lompoc has kind of cooled down.

New Hot water heater.

@John Knisely @Ram V.Right now, after setting aside estimated cap ex & maintenance, escrow, water/sewer, public lighting, etc. it will cash-flow around $600/ month.