Deduct NEW property taxes after you buyDeduct home insurance costsDeduct maintenance percentage, typically 10%Deduct vacancy+tenant nonperformance percentage(we recommend 5% for Class A, 10% Class B, 20% Class C, good luck with Class D)Deduct whatever dollar/percentage of cashflow you wantNow, what you have left over is the amount for debt service.Enter it into a mortgage calculator, with current interest rate for an investment property, to determine your maximum mortgage amount.Divide the mortgage amount by either 75% or 80%, depending on the required down payment percentage - this is your tentative price to offer.If the property needs repairs, you'll want to deduct 110%-120% of the estimated repairs from this amount.Be sure to also research the ARV and make sure it's 10-20% higher than your tentative purchase price.As long as the ARV checks out, this is the purchase price to offer.It is probably significantly below the asking price.

Looks like you removed CapEx in Proforma and increased repairs/maintenance by only $3,500?

Same with cost of utilities, and cost of repairs/maintenance. 

On either an A class property or a commercial building, I would do preventative maintenance, but beyond that I wouldn't worry about it. 

Under the routine maintenance safe harbor, if you had to do have the same maintenance completed within the last 10 years, you may be able to expense it as routine maintenance.

Looking to structure the deal with concession's to come as little out of pocket as possible so I have different offers in mind, but the payment is between the ranges.I figure another 20% for Property Management, Vacancy, Maintenance which totals to $1,100.84/M-$1,146.14/M. 

Initially, I underestimated expenses such as property management fees, maintenance costs, and unexpected repairs.

Meanwhile, your expenses, like debt service, taxes, insurance, and maintenance, continue.Another concern with investing in disaster-prone areas is the high cost of insurance.

If managed correctly, the rental income should cover your property expenses (like mortgage, insurance, and maintenance) while still leaving you with positive cash flow.

Right team, right attitude, right maintenance can make some tough assets work out.