Shop around.

A smart lender appreciates a smart buyer - but not a waffler.

If I could increase rent by $50 each then I would only spend a total of $10k among all 3 units which is possible - shop around and don't over improve!

They basically did all the due diligence, underwriting, feasibility studies, etc and then shopped out the property to a list of their clients they new would be interested. 

That's a VERY smart first step. :)Liz

That's what I was thinking, It is in an amazing location, right on the bus route, across the street from convenience stores, a newly built Walmart, major shopping centers, parks, schools, and the Cardinals stadium.

I'm willing to take calculated risks, but don't feel that its a smart decision to take on a project without performing a thorough analysis on the utilities. 

As long as you buy smart and don't over leverage (like a lot of people are doing here) you'll ride it out.  

Smart for asking those experienced landlords as you maneuver. 

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.