I am a new investor who just got my offer accepted for my first deal! After weeks of searching through various cities, I found two fourplexes. After some research I found that they were the last 2 properties belonging to an landlord, and offered to buy both at a discount. He accepted.

I am looking for some help analyzing the deal. The numbers look solid, but there might be something missing! Here are the details:

1) Two fourplexes in a small town. Total price $99,000 for 8 units. 

2) Each unit rents for 400-550. Total rent is 3650 and fully occupied, but will be 7/8 when I purchase.

3) Low crime. Quiet, blue collar town. 1hr from big capital city, 25mins from big suburb.

4) Currently managed by PM for 10% + $50 per extra door. $665 total. I think I can find better.

5) Both were built around 1900, look solid. Seller isn't aware of any major issues, but I will be doing DD.

6) Here's the kicker. Owner pays ALL UTILITIES. They are ~$150/month per tenant, so about 1.2k per month, aka 1/3rd of my rent. I assume this is because meters are not split.

Anyway, I ran the numbers and even with the huge utilities costs I still turn a good profit. I assumed 15% vacancy, 10% maint, 5% capex $1500 insurance and used historical taxes. Ends up cashflowing. Are these numbers conservative enough, and can I expect returns from this deal?

However, if I can tackle the utilities I can improve the cashflow considerably. If I am able to split meters for gas and electricity and have tenants pay them, I will save $920 per month or $11,000 per year. For the two properties, what would be the expected cost to split them, and would it be a smart move long-term?