The building inspector came and recently shut the building down for health/safety reasons by turning off all the gas to each unit.

Then to make matters worse, she went on a work trip and when she returned the water heater busted and had a small leak that ended up flooding the pantry and kitchen which ruined the flooring.

@Don Van Nguyen I know that I am in the minority but with most oil and gas downturns, Houston will see a considerable contraction.

To cover them on dangers & also tenants complaints if there is a leak, etc.

Since you are a pro, use the calculators provided under tools to help but here is my quick rundown on a post-it:Buy = $80kRehab = $30kHML Points = $3kHML Interest = $3k (assuming 90 days held total)Holding Costs = $1,500 (assuming 90 days electric, gas, water/trash/sewer, builders risk ins, prop tax)*Selling Costs = $10k (6% relator fees, 1.5% closing costs)Sale Price = $135kProfit = $7,500*I am taking a very high level guess on your holding costsFor me this is WAY too thin of a margin.

There is also a place where a kitchen can be installed (my mother used to have one there, but removed the stove and had the gas cut off), and there is also a place for a full sized washer and gas dryer in the basement.

Not sure how much more gas is left in that tank either..  

if you dont rehang the windows and doors they will leak and it will cost you anyway. 

For simplicity’s sake, I am considering rolling the utilities (water, gas, electric, internet/cable) into the rent.

It was built in the 50's and the owner pays water, gas, electric for the property.