24 unit complex - high expenses?

[Chase Gochnauer]

Hey guys,

I'm looking for my first large multi-family. I come across one that is in my sweet spot as far as location. Exteriors are in good condition. Interiors are very dated, a couple of units have been completely remodeled.

Asking price: $912,000
Gross rents @ 95% occupancy = $186,447
Addl income(laundry) = $7k

This side looks pretty normal and solid.

The 2013-2015 expenses are where I'm concerned:

$127k, $135k, $133k for each year. Maintenance being $30k-$40k, $10k "administrative", etc. This includes about $14k in management fees. These expenses seem awful high. My business will do a lot of the maintenance, but $30-40k seems quite high to begin with. 

Landlord does pay heat/water, plus common area electric for a total of $25k/yr.

With this, net incomes are $30-$55k/yr which doesn't support the purchase price. I offered $822k giving me some cushion for remodeling and bringing up rents, and essentially that's too low, not even getting a counter, others interested in closer to asking price.

I'm not sure what I'm missing here, unless expenses can be cut 30-40%, it can't support the asking price.