I have created a Discounted Cash Flow model on excel that utilizes sensitivity analysis, NPV, Profitability Index and other performance ratios so that you can analyze 15 different types of property or property under 15 different economic scenarios.

Total Population within local city of $12,000 each unit has individual meters but for some reason previous owner changed units to master hence owner pays for all utilities.

One of the new provisions states that they may "require manditory inspections, and providing city with back permits, rental history, Certs of Occupancy, and payment of past due capitol expansion and utility fees, SALES AND USE TAXES."

Nevertheless, make your offer based on actual rents.In addition to the items you mention, you'll need to account for vacancies, management expenses, advertising, utilities in vacant units, evictions, legal fees, tenant damage, make ready costs between tenants, etc...

Make sure that you get to pick the title agent, and find one that is very comfortable with double closings.I'm assuming your buyer put in his bid as an investor.

I agree anyone who is paying attention can see that we are picking up speed towards an oligarchy.

If the utilities are submetered, and you do not ahve lots of common area, so no pools, no clubhouse, no parks etc... you will probably run in the 25 to 30% range.

I'm looking to pick the brain of an experienced investor.

I've picked up some books and am looking at local listings.

Or you can go after closing and pick it up yourself.