I have another property in a hot market in El Paso, County Colorado that my daughter is leasing from me. 

I have noticed that a lot of rental units have furnace and hot water heaters in  the unit where the tenant pays all utilities,is this because it is cheaper in the long run to add the furnace and hot water heaters during the rehab and /or easier to just let the tenant pay everything.The property I am looking at does not have anything in it as far as heating but maybe the other owner was starting to run pipes for baseboard heating.I want to buy a 4 unit with a possible unit in basement so my question is, what choice should I make for the heating,which one is cheaper,more convenient for both  myself and the tenant.I do have a choice but don't know which route to take, or what are the questions to ask myself to make the proper choice.

He was supposed to cap off an open hvac pipe that is blowing hot air from the ceiling.

Morristown is a hot market, especially for multi-families for they don't come up too often and the rents are high due to the location.  

I go with what is hot... or try to anyways.. and I don't get stuck on one region.Although if hindsight was 20/20 I would have done nothing more than amassed rentals in Santa Clara county... would never have sold the 3 homes I owned in Palo Alto... etc etc.. but can't look back ...

It was a super hot market about 2-3 years ago.

I live in Dallas where the market is crazy hot and seems like deals where I would like to be a landlord are far and few between.

I've never had much experience with paying the tenants' utilities on a multi-family, but I assume the bill can be $100-$200 electric+water, especially in the hot summer months.

If you believe it is a smokin' hot deal, I'd get legal advice about terminating the contract and, once the contract is terminated, I'd have the attorney make a polite inquiry of the owner to determine if they are, in fact, in contract with the flakey wholesaler.  

Houston would take some getting used to climatewise...you should visit in summer as it is very humid and hot and summer is long.