That's the reason there are so many fourplexes and so few fiveplexes or even sixplexes.From what I gather, post offices and utility companies rarely care much about the permitting/zoning issues, so it probably wouldn't have been hard to get those set up.

I Offered it to them at 10% below market with him paying utilities. he wanted it, so I screened him to verify he can afford it.

Start with a standard offer, and write a contingency into it for electricity, all the below ground utilities, and then work your way to zoning, permitting etc.

Then there are the challenges with Section 8 tenants paying utilities and taking care of their rental property.

Estimate utilities and figure out who pays them (separate meters, landlord paid, etc)5.

Then I would speak with a land surveyor or civil engineer to get a sense of what it would take to obtain all the entitlements and bring in the utilities, etc.     

Prepare for additional costs: If you’re adding units, you’ll likely need to address the water meter situation and possibly upgrade utilities.

There's no one size fits all of course, but generally the STR/MTR/LTR mix in a multi-family unit can be challenging because the way renters utilize these properties is so different.

As this approach uses very little documentation, it is the least reliable methodology in preparing a cost segregation study.To see all of the steps included within each method, refer to Chapter 3 of the IRS Cost Segregation Audit Techniques Guide.What methodology has your company utilized?

STR management is 20-25% (I would recommend self managing or getting a VA), since income is higher you could probably get away with 5% for maintenance / cap ex but remember you need to cover utilities and cleaning for these units which drives up costs.