Utilities are controlled.

Mostly just lawn care, pest control, and utilities for vacant units. 

You're missing property taxes.Any utilities?

But the good news is there are areas with lower tax rates, and small to large multi-family can produce good cash flow.

& utilities included).

So, we are looking for an efficient (energy-wise, because we pay all the utilities), safe, and relatively inexpensive.

However, there was no utilities to the third floor. 

The gross numbers are belowIncome = 100Expenses(including depreciation) = 200Net income = -100Your 10% of -100 is -10You will receive a K-1 showing -10 of income.Now whether you will be able to utilize the loss or suspend it and carry it forward is another story.

That includes all utilities and internet.

I sent over an estoppel agreement for the tenants to complete and sign, and the listing agent told me they do not speak English and he do not speak Spanish, so I would need to produce a Spanish version.