I'd personally say pulling your water heater out and replacing with a wall mount on demand one, would be worth the cost to have in unit washer dryer if you are staying there or renting it, it would be worth it.its always worth doing the big stuff well and correct even if you are cleaning up after someone, the long term hold always prevails, its just a little frustrating front sometimes, but hang in there!

Primarily desert washes, but also near a creek....So I would go knock on doors and ask neighbors when it has flooded and what they think about the area......maybe call the County water board and ask then what has happened there in the past.

It covers internet, water, trash, cable, and exterior (roof, siding, etc.).

Or, at least a contractual commitment from him that we can revisit the share allocation based based on the depreciation recapture based on when, and how much, we sell the property for. 

Based on my experience of running properties, even if the build were to cost you as much as $600k but you could generate $125k/year, you'd be very happy with that investment. 

I am a CT based investor, flipper and property management company owner.  

I guess a lot of Scott's buyers are under water the day they sign a loan, so he must be regularly evicting and reselling some of those houses.

I highly suggest you take a closer look at your numbers, particularly for a multi-family building which has added costs compared to SF homes practically everywhere in this country between STC ratings, fire ratings, storm water,  fire suppression requirements etc. 

Direction Cracks that run diagonally or horizontallyCracks that run at a 45-degree angleOther signs Cracks that appear suddenlyMultiple cracks, especially if clustered togetherCracks that widen over timeDoors and windows that don't close properlySagging ceilings or leaning wallsSigns of water leakage  -------------------------------------Just annoying stuff...fun, huh?

Down payment of $13K including reserves sounds pretty low to me . ( Based on Maryland )