There is also HOA of $353/month that covers ext. insurance, water, sewer, ext. maintenance including snow removal, trash, and some shared amenities like pool and BBQ area.  

Here are the high level numbers – mostly based on my own estimates being a recent owner next door:$119K Scheduled Rent$93K Actual Rental income$9K Mgmt Fees (9%)$20K RE taxes $15K ($50/unit/mo + $200/mo. exterior lawn/snow)$9K Insurance (This is an est based on my 7-unit costing $3.5K)$15K Utilities $5K CapEx/reserves$20K NOI (of course they provided a much higher NOI estimate)Feel free to question my assumptions, but the real difficulty I’m having is assessing what vacancy rate I should assume in valuing the building.

Proforma of increasing all rents to $475 would show gross income of $364,800Income:Gross Rents - $342,180Vacancy (5%) -    -$17,109Laundry - $7,246Total Income - $332,317Expenses:Taxes - $37,482Insurance - $11,906Gas  - $1,250Water - $42,983Electric - $2,492Trash - $2,192Maintenance and Supplies - $33,302Lawn and Snow - $4,855Cleaning - $1,688Misc. - $1,735Professional Fees - $2,191Total Expenses - $142,076Net Operating Income - $190,241This shows a 9% cap rate.Had a few questions. 

Warm as in no hint of winter or snow?

When I bought my first home I decided that I didn't want to cut grass or shovel snow so we bought a townhome.It took me 6 mos of hunting to find my first rehab project and it was really hard to pull the trigger and take the plunge into investing.

First forget what we did back then, it was the 70's. Now

I and my brother started investing in real estate part time when we were in our early 20's. Now

The rain just makes everything green in the summer, and beautiful snow in the mountains in the winter!

I thought you guys always get 10 feet of snow and a foot of ice every winter LOL :D

which gives us a 4.65% APR (30 yrs.)You also did not include other expense items:  utilities, sewer, garbage, snow removal, lawn care.