Did you learn this on the net-maybe some guru garbage?

@Sergio AvinaMake sure you dial in the expenses of water and garbage (I made some assumptions).

Yearly: $95,640Expenses:-Electricity (for the units he pays the utilities)- $500/mn-Water and sewer- $225-Garbage- $60-Insurance- $252-Property tax- $91.08-Cable- $450-Lawn care- $75-Vacancy- 5%- $398.50-Repair and Main. - 3%- $239.10-Capex- 10%- $797-Property management- 10%- $797.

He's worried the local law enforcement will continue to send him notifications about garbage in the yard and the falling down garage.

I've seen projects where someone installs $10/sf flooring and it looks like garbage.

They are also trying to provide a quality living environment (hopefully) and fliers will come across as cheap and garbage. 

But I do specify that I am not responsible for use of existing ice-maker or garbage disposal, that those are currently operable, but it is their responsibility for any repairs if they wish to use them.  

There is also some room for rent increase.Purchase Price$1.6m30%30 yr @ 6% Interest Only 5 year balloonIncome (monthly):$22,365 rent$275 laundryExpenses (monthly):$797 Electric$1,300 Gas (heat)$800 Water and Sewer$555 Garbage$1,142 Insurance$396 Snow Removal$475 Landscaping$356 Exterminating$1,132 5% Vacancy$1,584.80 7% Repairs and Maintence$1,341.90 6% Management Fee$2,567 Taxes$5,600 P&IOverall:Monthly Income $22,640Monthly Expenses $18,246Monthly Cashflow $4,393CAP Rate 7.48%Total Cash Needed  $482,500Cash on Cash ROI  10.93%The building does have a flat roof that will need some repair in a couple years.  

Specifically, estimating the electricity, garbage, sewer, water, monthly insurance, vacancy, repairs and maintenance, cap ex, purchase closing cost, estimated repair cost, ARV and property management.

Total $3,450/monthLandlord pays water/sewer/garbage (approx. $5k/year total)Property Taxes: $4,360/yearProperty Insurance: $2,212/year (waiting for second quote, hopefully lower)Maintenance/Turnover: assumed $4,000/year for all maintenance/CapX/turnoverManagement Fee: Assumed 10%.