Drink water, run the ac at certain times, save electricity run the washer / dryer at such & such time, oh, and don't forget to run the sprinklers :) 

. $1200 sounds low for four (4) college students, In my town it is $675/month which includes all utilities and wifi. (675*4-=2700, less $125 electric, 80 gas, 80 wifi, 50 water, 30 sewer, 30 garbage=$2300/month net rent. 3.

Problem will be adding the extra bathrooms, electrical and plumbing and looking after those permits.  

Depending on size on units you could go electric baseboard heaters.

Moving electrical outlets, changing the plumbing to have a double sink instead of a single, moving walls, etc etc etc...

A larger new construction buy & hold rental project we are specing out may go all electric to reduce the lead time for having the gas company setup the lines, permitting etc. and this would make adopting the renewable energy credit program more feasible.Many of these projects offer state, local and federal tax credits and we have to get smarter about those programs.

Recently, the electrical wiring and some other things have been lifted out.

They're just to cheap and put out great light, plus I don't pay for the electricity and none of my tenants have had any issue with them.

I will live in the property for the first several years according to FHA standards and therefore cash flows may not appear as great during the early years.Purchase: $165,000Rent: A-$200 (I will be living in this unit with a roommate paying me $200-$250/mo, for tax purposes I may or may not pay myself rent), B-$450, C-$475 [$1,125/mo or $13,500/yr]      I believe potential market rent is in the $500-$550 range depending on updatesFHA Loan: 3.5% down, 30 year am, 30 year note, no points (+/- $900/mo PITI)Tenants pay electric, gas, water & sewer all separately meteredTaxes: $1,400/yrAfter doing a few initial calculations this looks to be a fairly solid deal.

Secondly, If that were done would it be best to keep the existing hot water system running on oil or should i convert to electric hot water as well?