@Michael Morton
First off I see that your debt service is much too low at 18k/annual. It appears that you have estimated this pmt of $1,500 on a 30 year term. That is very unlikely, 20 year notes are most common on commercial financing. Also the rate is going to be somewhere between 5-6%. With 30% down and terms of 240 and 5.5%, you're looking at a pmt of $1,800/month.
Additionally, for the current rents, I would say this building is over priced by about 100k. Even with increased rents like you say of 920/unit/month, I would like to see you get this property more around 310k.
You also state that this is an "ok deal", why would you want that?
If the figures you have for utilities were provided by the seller and not a shot in dark, then you're right, the utilities are killing this deal.
I say move on and look for spectacular deals, not ones where you are barely getting by.
Check some of @Ben Leybovich posts regarding cap-ex.
https://www.biggerpockets.com/renewsblog/2015/03/0...
