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.

Are there any expenses that a property management company commonly incurs during the rental (eg, cleaning between renters, marketing, etc.) or are these usually all passed on to the owner?

New electric, plumbing, furnace & roof.

If you don't understand what you need to do to make this situation work, call an electrician.If not cutting into the wall is an absolute requirement, you can get surface-mountable two-gang electrical boxes. 

The building itself is in great shape, with a new roof, new electrical, new windows, new boiler, and is 100% occupied.Generally most of our real estate purchases are cash so we are not very experienced in finding loans, let alone multifamily or apartment loans.  

Most of the time they will pay, but offer some type of value, whether it be a carpet clean, paint, or cleaning the exterior of the propertyGino

My wife and I own Appliance Doctor of Lima, familiar with plumbing, electrical and house construction.

(google search)understand you CANNOT ask extra rent beside the approved amount, and sometimes the voucher may include utilities which means the $1,400 on the voucher may be 250 for utilities and 1,150 for tenant portion + hud.also depending on tenants changing financials and family changes, the % amount paid by hud and tenant may change over time.i would give a call to local office and also find fellow landlords in the area already working with section8 to network with.you want nice,clean, durable but not very base level. section 8 tenants usually have choices so DO NOT BE A SLUMLORD.you are a nice professional provider of quality home solutions for nice tenants!

Cost Assumptions Purchase Price $285,000.00 Closing Costs at 4% $11,400.00 Total Cost $296,400.00 Mortgage at 30yr/5% Interest /20% down $1,223.95 Monthly Expenses Monthly Rent $4,500.00 Electric $250.00 Water $200.00 Trash $100.00 Vacany Rate 8% $360.00 Maintenance 8% $360.00 Property Manager 10% $450.00 Insurance $300.00 Monthly Property Taxes Due $121.97 Cap Ex Reserve 7% $315.00 Total Monthly Expenses $2,456.97 Less Mortgage Payment $1,223.95 Theoretical Cash Flow $819.08 Cap Rate Cash On Cash 8.6 14.37

I have told her that I will take over the entire mortgage with late fees and everything included and she can walk away from the house clean and she agreed.