Note that water penetration is not limited to flooding from rising water levels on the ground in a weather event.

We have had all kinds of issue with the water meter reading too, and getting lot rent invoices in a timely manor.

The yard looked like trash, plumbing stack leaks and multiple water heater leaks.

Quote from @Jeffrey Bourque: Hello All, I am new and this is my first attempt at purchasing a property with the intent to create monthly cash flow.The property: Triplex Listed at $140,000 - Total monthly rent income $2,150 - Tenants want to stay and are all willing to sign new leases for 3 years - 8 beds 5 baths and 3,500sqft livable space on a 4,800sqft lot - Heat and electric paid by tenants and water trash paid by owner $180 month - I have managed to talk the selling price down to $105,000 with a kick of $10,000 for closing and commissions so $115,000 all in - Building is in fairly good shape according to pictures and questions but have not done a inspection yet - some general maintenance repairs are needed according to the seller but nothing that seems to bother the tenants. - Taxes are on the higher side at $6,000 yearMy Numbers: $115,000 putting 20% of my money $23,000 and finance the rest with total expense of $1,834Monthly expense numbers: Future Maintenance 13% $273 - Vacancy 5% $105 - Property Insurance 5% $105 - Property Taxes 23% $500 - Property management 10% $215 - Office/Travel/Legal 4% $84 - Mortgage 26% $552 - Monthly Cash Flow - $316 per month or $3,792 per year so Cash on Cash = 17%I think this looks like it is a deal worth doing and I also believe I can bump the total rent up by $50 each tenant which I think make it even better.

All water, sewer, and electrical infrastructure is being replaced.

Your PM replaced the water heater because it was leaking.

If you have a swimming pool check out the water pump system with aerial hoses.  

There's no way I can keep the house above water with that rent let alone consider any positive cash flow...so I need them out!

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.

An auto body shop across the street that "stores" cars needing work there.Since abandoning the home, major landscaping would also be needed to clean up the walkway to the water.