According to agent the rents are under market/I’m currently waiting to receive feedback from a property management company regarding the current market rent and vacancy rates for property.The given Cap Rate: 3.74%NOI: $74,715Unit Mix: 4 one bedrooms/one bath & 4 two-bedrooms/one bathExit Strategy: Refinance after reposition within 2-4 yearsValue add potential: needs updating (bathroom & kitchen), appliances are in as is condition, needs painting, unfinished basement w/ laundry, 8+ car parking lot.Exterior: stuccoSeems the owner pays for gas and water, tenant’s responsible for electric.Below is my underwriting when I applied the 3.74% Cap Rate to the adjusted NOI bring the valuation of the building to $1,180M, For the expenses, I used 55% since the seller's expense came to 35%Since it's not cash flowing, below I adjusted the purchase price to $525K as a potential cash offer: So deal or flop?

That seems great until I tell you that the landlord pays water, electricity, and gas. 

He left a cap off the new tankless heater, causing a need for an emergency gas company fix it on a Sunday morning after I noticed a strong smell of gas outside.

I looked at the property on the MLS and it states rent includes water, electric, gas, garbage! 

No wasting gas to show properties over and over or speaking to tire kickers.

The only maintenance while she was there included replacing the hot water tank (leak), checking the furnace (gas meter outside froze) and replacing the shower valve cartridge.

I'll look tomorrow but electric and gas is sub-metered.

Next look at how much you can put down, figure out the mortgage, electric bill, water bill, gas bill-If the rent covers these and you have something left over then its probably a good deal. 

I've actually had some Realtors refer to it as "gas money."

We are number on in the nation on coal and quite high on oil and gas.