@Ed Matson I appreciate the insight on your property's operating performance and it really sheds light on the understated expenses on the current deal I am analyzing.

Sometimes. prospective tenants will understate the size of their dog and will not be forthright about the breed.

Also, if he isn't including those figures, chances are, he didn't include, or understated his Maintenance and repair, Lawn and landscaping, pest control... all because "I do it myself". 

Also sellers may understate income for taxes but want to value based on a higher income number.

The real key is building your network of people on the ground. a GREAT team cannot be understated, this is what you need.

if you are in an admitted market, meaning insurance company under state jurisdiction, then the refund would be pro-rated. 

Lastly, and I cannot understate the importance of this, avoid using a commercial lender at all costs!!!

Okay, but even with understated design fees, it still loses a million dollars. 

And add it on as additional rent if at all possible (check with an attorney before amending your lease to do this) according to your lease that way you’re definitely covered charging them under state law or at least we are in my state.

Maybe the Seller is understating the actual expenses and not taking into consideration things like reserves, vacancy, debt service...Maybe there is no off-street parking which limits its rentability.