The AAR does NOT include dividends.

The agreement stipulates:"The owners agree, that no water shall be used for commercial purpose, but only for their private domestic use including vegetable gardens and livestock maintenance."

Portfolio = Income derived from financial instruments like dividends (including REITs), interest, royalties, and capital gains.Mostly income w/out loss potential, and favorable tax rates.Cap losses may offset cap gains w up to $3,000 loss.

The good news is that these properties can indeed be purchased for various investment strategies, including rentals, BRRRR (Buy, Rehab, Rent, Refinance Repeat), or fix-and-flip projects.Purchasing as a Rental or for BRRRR:You can acquire a Freddie Mac home to hold as a rental property or implement the BRRRR strategy.

This includes converting it to a rental property or refinancing into a different kind of loan. 

32k or even 42k on a half million dollar house doesn't sound all that good.What's your projected cash flow after all your expenses including a likely higher mortgage payment than the current owners?

But I agree with @Stuart Udis - when making offers on occupied rental property, I always review the Financials including the RR & T12.

Here is a list of potential options:Trello/Asana/Zoho Projects/Freedcamp/Basecamp/Workfront/Monday.com/Jira/etc,etc,etc,etc,etc - General project management software that includes tasks, Gantt scheduling, calendars, project forums, document storage & team collaboration toolsTeamGantt/Gantter/MS Project - Gantt Scheduling Softwares for creating Gantt Charts & Timelines, & managing tasks.Podio - Customizable system that allows you to build workflows, track tasks, track leads, etc.Smartsheet/AirTable - Provide spreadsheet style platforms with additional functionalities for uploading documents/images, assigning tasks, calendar, images, etcOffice 365/Google Sheets Spreadsheets - Believe it or not, a lot of successful flippers still manage their entire business in Microsoft Excel or Google Sheets. 

This could include keeping track of the construction holdback.  

Your net income includes equity from debt pay-down.