separately metered for heat/electric-city trash/water/sewer is $120/quarterly.

Not sure about PA, but in NY if there are any lights in common areas the landlord needs a separate meter - you can just go count the meters on the house, if there are 5 then you know there is one for common areas.I wouldn’t use cap rates for a four unit, use comparable properties if possible.

Additionally there is a second meter that needs to be removed.

You might want to increase your vacancy allowance to 10% {unless you have good stats on the locale}; set a 10% {of gross revenue} maintenance allowance; allow 7-10% for PM.You also need to consider the following expenses:Hydro - does the building have a house meter?

The way they currently have it set up, they are paying all utilities (even though its all metered seperately), and there are 2 apts that they stopped updating that would be rented out with a little elbow grease.

Typically, the bigger the square footage the more the price per square foot should drop because the cost of the kitchen, electric meter, hvac system, etc is then spread across more square feet.   

As for utilities, we are checking with the provider to see if we can separately meter the garage, as we have to run new services.

Good old Smart meters!

Pay to separately meter the utility.

The real estate market is undervalued for now, with prime locations on average costing about 1,200 USD per square meter (about 110$ per square foot).