Smoke damage and mold issues and electric meter monkeying/diverting (with huge fines from your utility) will knock any extra monthly you got out quickly.   

Landlord only pays for trash, which is about $50/month, all other utilities are individually metered.

I have been told that the common areas such as the hallways, stair cases, any outdoor lighting have to be put on a separate meter when renting out a multifamily home.

Can you provide separate utility metering for the units? 

There are many other fun things not shown: Complete rewiring of all electrical, including new meter base and panel.Lots of attic and crawlspace work.Insulating walls, attic, basementAnd so many other random tasks that eat up hours and days, even though it seems like nothing at all is getting done. 

And if that is the case would sub metering the property be doable or easier with hot and cold lines already installed for each unit?  

Has anyone used a third party billing service to bill tenants in a building that is sub metered?  

I signed up online for water service, but was denied because apparently I need a master meter, which requires almost as much documentation as purchasing the property itself!

Heat and hot water included (no individual meters).

I tried to include all the pertinent information below:Rental Income: $13,200Rent: Currently has a tenant on one side at $550 per month without a lease – I’ve made it a condition of the sale that the tenant has either signed a new lease with my property management company or delivers that side vacant; other side is not rented out due to required rent ready repairs; rental comps in the area show between $550-600 (I’m being conservative and assuming $550).Expenses:Vacancy: 10% ($1,320)Property Management: 10% of gross rents ($1,188)Property Taxes: $2,065 ($905 for City of Memphis, $1,160 for Shelby County)Property Insurance: $450 per year Repairs and Maintenance Assumption: 2% of Property Value per year ($980 per year)Utilities: separately metered; all paid by tenant except for lawn mowing at $25 once a month for $300Advertising: 6% (roughly ½ of first month’s rent) $792 per yearDebt Service: Based on $49k purchase + repair price, 20% ($9.8k) down, 5% 30 year fixed is $2,525 per yearLocation:This is probably where most of my concern is coming from: Western edge of Hickory Hill, Memphis, 38115; major cross streets: just SW of Clarke Rd and Winchester RdAcquisition:Purchase Price: $42k, seller to pay closing costsRepairs: $7.5kTotal Acquisition Cost: $49.5kARV: Large range of comps in the area, best guess is $60kFinancial Metrics:Net Operating Income: $6,105Cap Rate: 12.33%Cash Flow: $3,580 per year, $298.33 per month, $149.17 per unit per monthCash-on-Cash Return: 36.5%Do you think it's a good deal?