Community well purchase?

[Aubrey Ford]

Kinda a weird situation I think. My rental property’s water comes from a community well which a neighbor owns. She is an elderly lady whose recently passed husband always dealt with.  It has been having issues and my tenants are complaining about going days without water. I realize it’s not my problem. But I see my options are

1. Put a well on my property. This would cost 10-12k and 2-3 months to complete

2. I pay the $1500 in repairs to the community well so my tenants have water. But I think that would money down the drain. I don’t think I can use it as a business deduction. 

3. I was told by my tenant that she’d love to get out of the water business and would be willing to make a great deal on selling it. 

Not sure I want to be in the utility business. But the idea of solving the water problem in a way that generates cash flow intrigues me. 

Thoughts?

[Marc Winter]

Not sure I understand what you meant:  the TENANT wants to make a deal?

If you meant the neighbor wants to sell, buy the property if you can.  Once you own it, take some free cash flow and get the wells separated.  

By doing so, I believe you'll increase the value of both properties.