Higher than normal water bills (if you have metered water)5.

@Amber Saulsbury @Irina Belkofer is correct in laying the CAP rate formula, as I read in one post above where they included the financing expense which SHOULD NOT be included when calculating the CAP rate.Anyways, here in El Paso, Texas I can buy a multi family (8 unit or over) C- building with a CAP of 8% - 9%, Most investors settle for that, but my value play strategy is, I come in and rehab the units, add individual water meters and charge it back to the tenants, sign 12 months leases, raise rents, swap washing machines for coin-operated machines, you get the idea, anything that helps me reduce the expenses.

Hopefully all are on separate meters and billed separate to the tenants by the utility companies. 

All of my properties have one master water meter that i pay the bill. 

Because every meter has to pay base fees.

Search on BP for "BS Meter". :) I agree to, be the best agent you can be first, you can deal anywhere in the state of Mo.

*Rooms are individually metered for water and electric.

I guarantee the month after the meters come on, the person responsible will fix their leaky toilet or cut back on consumption.

First thing I would look at is whether you can get the utilities on separate meters.  

Does anyone have any experience having smart water meters installed in a 4 unit property where currently the landlord pays the water for the entire building?