How to analyze cash on cash ROI on an owner occupied 2-family?

[Shannon H.]

We are looking at multi-families today and have been trying to determine the cash flow on the properties. If the tenant is paying their own utilities, do we include our utilities in expenses while determining the cash flow?

[Mark Bookhagen]

Only include real expenses that you will incur. If tenant is going to pay electric and gas, you don't have to include them. If you are going to pay water and refuse removal, include those.