Analysis questions regarding debt service and lienable utilities

[Ryan Tyree]

I see the term Expense Ratio tossed around a lot on the forums. This was not a number I have been using in my analyses so I wanted to gain some clarity on exactly what is included in this number. For instance, I believe debt service is not included from what I have read on the forums. More importantly though, I am having trouble figuring out exactly what is rolled into the debt service number. The obvious one is the loan, but do people also include taxes and insurance as part of the debt service? I tend to wrap all 3 values into the loan and let the bank pay the taxes and insurance out of an escrow account. Do others do this and do you consider this part of the debt service? What kind of expense ratio numbers do you find acceptable? I am using between 50%-55% in my analyses which does not include PITI.

The 2nd question I have regards utilities.  In my market water/sewer is a leinable utility if left unpaid.  Most landlords choose to wrap this into the monthly rent because of this.  Does everyone on BP tend to agree with this thinking?  Water and sewer tend to scare me because of the threat of a running toilet, or a tennat washing cars, etc.  

I appreciate the help and guidance.  Thanks again BP!