This is complete garbage.

Here's the revised deal:Purchase Price: $340,000Down payment: $68,000Closing Costs: 5% $13,600Square footage: ~2500Bed/bath per unit: 3/2 for bothCurrent rent: $1375 and $1300 but we would raise them both to $1500 each over 2 yearsMonthly taxes and insurance: $525Estimated monthly mortgage payments on $272,000 30 year loan (80% LTV) with a 4% interest rate (which he is confident about): $1300Estimated monthly maintenance costs: 5% of gross rents ($150)Capex: 3% of GR ($90)Vacancy cost: 5% of GR ($150)Management fee: 2% ($60) (he will manage it himself for 5-7 years when he sells it)Garbage/heat: $0lawn care: $100Misc expenses: $75Total monthly expenses: $2450Monthly cash flow before rent raise: $225Cash on Cash return before rent raise: 3.3%Cash flow after rent raise: $550Cash on Cash return after rent raise: 8.1%We've only alotted 3% for capex because he plans on selling it now in 5-7 years.

I then talked to the WM residential division to get cart service and there is a city ordinance that the only hauler who can furnish garbage cans in city limits is the city of OKC.  

@Brady Alford even if the garbage roof doesn't scare away your buyer, it will eliminate any buyer using conventional financing, as the lender won't let it slide.

And even more scared to ask them to put up some Good Faith Money in an Attorney's escrow to obtain an Escrow Letter and not just this $1,000  garbage either! 

Also, to me the noise is fairly unnoticeable from the inside.Here are my estimated monthly expenses: Accounting Reserve $ 38 Advertising Reserve $ 50 Homeowners Insurance $ 240 Flood Insurance $ 45 Lawn / Snow $ 80 Legal Reserve $ 45 Property Management $ 152 Repairs / Maintenance Reserve $ 100 Supplies $ - Vacancy Reserve $ 114 Pest Control Reserve $ 25 Garbage $ - Sewer / Water / Gas $ 120 HOA $ - Taxes $ 243.95 Capex Reserve $ 83.33 Subtotal $ 1,336 My estimated cap rate is at 4.35% at asking price.

The seller has sent me an excel file which is basically a pro forma income statement.The monthly numbers are as follows:Income: $5700Repair & Maintenance: $200Insurance: $200Property Tax: $800Gas: $100 (seems low to me for an 8 unit)Electric: $100 (seems low to me)Water: $75 (seems low to me)Garbage: $60 NOI: $4165 Is this missing any numbers that I should be including (beside) debt service?

ANNUAL COMMENTS Rent 3,000 36,000 Electric/H20/Garbage 1,400 16,800 Telephone/Internet 155 1,860 Insurance Liability 225 2,700 Sales tax on rent 315 3,780 Employees / Payroll 6,500 78,000 POS Ruby 500 6,000 Misc.

I said why would I do that.. he said  RATS.. there is so much garbage that there is going to be rats everywhere.. these are so bad they would not show them on TV

I know you can look up past property taxes for a property on the county website but how do you go about finding what the past electric, water, sewer, and garbage expenses will be?