?Utilities Included?
HI, we are purchasing our first investment. It is grandma's house. We can purchase for 25000, appraised at 38K. thought we would finance 35k and pay off a vehicle with cash.
My question is: we have friends who own a 6plex. They live there. They told us we should include utilities and rent for 800/mo. Average prices in the area per classifieds are 500 mo + util. Our friend said if they default on util. payments we will be responsible. Is this true????
With renting with them paying util. is:
221 mortgage
150 taxes
16 insurance
387 total/mo payments
any advice would be appreciated!!!
Kim in PA 
$1800 property taxes on a $38k house? Remind me not to complain about my property taxes anymore! As I just addressed in another topic, I can't conceive of why anyone would ever pay for utilities. It just doesn't make sense to me, and it has not worked well at all in my area. As per your question about who is responsible for the bill. The utility company will hold you responsible if it is in your name. I can not conceive of any reason why you would choose to do this though. If you leave out the utilities you can charge less rent. That $500 would look alot better than the $800 to me. Also, the tenant would probably prefer the option of being able to go light on the utilities if they were having a tough month instead of being tied into the larger payment. Just my two cents, if it's even worth that.