But, it dawns on me --there's a much bigger question:  Who *IS* buying these properties, what is THEIR analysis, and WHY are they doing it?  

For a fridge, micro-hood combo, dishwasher and range we pay less than $2,000 for all delivered.

In our area, most rentals don't have a garage, second bathroom, or a dishwasher.  

Water bill for the month is $100.Unit 1: ($100 * 1/2) * (2 tenants / 5 tenants) + ($100 * 1/2) * (1000 sqft / 1500 sqft) = $63.33Unit 2: ($100 * 1/2) * (3 tenants / 5 tenants) + ($100 * 1/2) * (500 sqft / 1500 sqft) = $36.67This third method is much more complex to do, but a simple Excel spreadsheet can help alleviate the headache of doing this monthly.There are other ones you can do, like bathroom total ratios, dishwasher vs no dishwasher / washing machine vs no washing machine if the units differ.In the end, you recoup the full cost of the utility bills and bill it as rent + Utility usage (variable) (Check with local landlord laws to determine if you are able to do this).

Thanks Dawn Anastasi I will let you know !

Btw, you wouldn't happen to be related to Jim and Dawn Sullivan in Hudson would you?

Previous owner hammed the cabinets and they took away all appliances: fridge, range, dishwasher ... you name it. 

Also, why would we pay for $2000 coverage for personal property when the only things that are ours are the fridge, stove, dishwasher, washer and dryer?

Simply put replacing the dishwasher or AC unit in a property yielding $600/month versus one yielding $100/month costs the same in dollars for each but is a larger percentage of rent in the cheaper property.

What I mean is this:  a one bedroom apartment in a low rent city vs. a three bedroom unit in an average to higher rent location...replacing a dishwasher, fixing an air conditioner, or changing a toilet cost the same in the $300/month one bedroom as it does in the $1500/month three bedroom in a higher rent area.