They are covering cost of insurance, taxes, utilities and all medical expenses which are rapidly draining their available funds.

A lot of investors want to buy as many properties as they can and utilize as much debt as they can.

You'll want to have an idea of how you handle utilities, and I've heard of the owner covering a weekly house cleaning to keep the peace sort of thing.  

I have done this a few times myself and have a few basic recommendations:1) Make sure the seller owns the property free and clear and that it's very clear to both parties whether the arrangement involves a deed of trust or contract for deed2) If a balloon payment is involved, be sure to assess your ability to refinance and make that balloon payment in the future- optional extensions can help manage this risk3) Understand the tax implications if the interest rate is notably above or below market rates4) Get title insurance! 

And yeah I am not opposed to the 80% ltv, just figured get the most I can possible to utilize it as best possible with cash reserves left over.

We pay about $1700 for mortgage, insurance, utilities ect.  

Otherwise, they will trash the property, not pay their portion of rent or utilities, and then move on to the next property.

However, as a primary, it depends on the property and how you utilize it. 

In my estimation (local utility costs vary as well as temperature) it is about $400 per month on average. 

Meanwhile these same service providers don't explain the legal process which ties into how the insurance coverage truly works let alone explain how to utilize additional insured status, indemnification clauses amongst many other tools at your disposal  because that is not a profitable business for these service providers to be in.