The current owner is shopping it around for 1.35m (7cap) and the proforma numbers are as followed: ANNUALIZED INCOMEActual MarketGross Potential Rent $191,639 Less: Vacancy ($5,749) Effective Gross Income $185,890 Less: Expenses ($91,497) Net Operating Income $94,393 Debt Service ($65,592) Net Cash Flow after Debt Service $28,801 Principal Reduction $17,403Total Return $46,204 ANNUALIZED EXPENSESActual MarketProperty Management Fee $9,582 Replacement Reserves $5,250 Building Insurance $6,712 Maintenance $12,560 Taxes - Real Estate $36,296 (37220 w/o exception)Utility - Electricity $2,453 Utility - Gas $12,369Utility - Water/Sewer $6,275 Total Expenses $91,497 Expenses Per RSF $8.39 Expenses Per Unit $4,357I did some additional digging and found that they offer Wi-Fi for the building (I talked to a rep and said providing service for a building that size should run 285 a month) and the trash was left off which runs about 285/month.

Hi Leslie, I unfortunately from time to time have to utilize mold remediation services.

Operating expenses include utility, payroll, landscaping, pest control, taxes, insurance, repairs and maintenance to name a fewThese are expenses, different from capital expenditures such as fridges hot water heaters and flooring.  

If it dose make money, then you want to run the numbers again without your rent included to see where you are at.At this point usually you can live for free or just the cost of utilities. 

Additionally, after 24 months of payments, you can also utilize market appreciation rates as a basis for the removal of the PMI. 

Income 51,000Expenses 13828 (I included utilities here)Depreciation 9953Taxes 13003Interest 9593Insurance 6089 (most of this is pmi on one of the loans.

You should also read a few entrepreneurial books that will help you with mindset and productivity.As far as the property stuff goes, I would definitely utilize that VA loan, if you can.

@Raman Bindlishyes, passive losses are carried forward until utilized or the activity is disposed of.

Goes on by saying everything is "straight forward, annual expenses run around 10k and includes taxes, utilities, and insurance."

If you open a new utility account in a new city they ask for this information.