Help in analysis of multi-family

[Don Nelson]

Hey Multi-fam BP'ers...

I had a deal that looked pretty good on paper until the seller disclosed they pay for all utilities.  That really messed up the plan. The actual numbers are below.  So my question is this...how can I create a deal out of a situation like this?  The main issue is lending.  Since the numbers are so bad, I would have to get a bridge loan and separately meter things, combined with raising rents, which would likely lose half the tenants (fully occupied right now).  Struggling to find a deal that's actually a deal.  I would love to just jump into syndication but we aren't ready for that from a cash and partner/experience standpoint.  

Thought we might have found a niche in smaller apartment buildings, but man...the utilities and trash/pest control are killing this deal.  Should I stick with duplexes that are separately metered?  Any input appreciated.

PROPERTY INFO		CASH FLOW
Number of Units	12	Gross Op Income	$63300
After Repair Value	$320000	Expenses	$45856
Purchase Price	$250000	Net Op Income	$17443
Rehab Required	$25,000	Debt Service	$18468	Monthly Cash Flow
Monthly Rent Per Unit	$440	Annual Cash Flow	-$1025	-$85
Carrying Costs	$0	CASH ON CASH ROI	-2.89%
Closing Costs	$7813	Investor ROI	10%
Cash needed for deal	$76563	Arbitrage	-12.89%
Cash left in deal after refi	$35440	LENDING
Equity After Rehab	$37188	Loan Amount	$206250
DSCR	0.94	Bridge Loan Rate	6.5%
LTV	75%	Bridge Loan Payment	$1539
CAP RATE	5.45%	Bridge Loan Fees	$7813
INCOME		Months to stability	0
M Rental Income	$5275	Perm Loan Rate	6.5%
Other Income	$0	Perm Loan Payment
Total	$5275	Perm Loan Fees
M EXPENSES		ANNUAL AMOUNTS	VAC RATE
Taxes	$115	$1382	11.43%
Insurance	$265	$3174
Repairs & Maint (5%)	$264	$3165
Pest Control	$50	$600
Trash	$215	$2580
Accounting	$200	$2400
Vacancy (x vacancy rate)	$603	$7235
Management (8%)	$450	$5400
Electric	$139	$1672
Grounds Maint	$200	$2400
Water	$589	$7074
Gas	$51	$611
Sewer	$385	$4620
10% investor payment	$295	$3544
Total	$3821	$45856