Unfortunately the placement of a water heater in close proximity to the water and vent hook ups is preventing the tenant from fitting a washer and dryer unit set up in the cabinet space provided (side by side and stacked config not possible).

Understand exactly how big is the structure, how are you orient the structural, what's the access situation, parking situation, driveway, landscape, and waste water management. 

You will likely need to upgrade the water service to the building as well.

Hi Tj, when starting something new, start with a pilot program with some funds that's not gonna sink the ship even if you took a major lost and test out the water.

I believe it would also be more work for me with more wear and tear because most of the tenants are not working so in a utilities included unit they use more water and we have a well.  

One of our tenants had a higher water bill due to the leak that has happened because of water heater failure.

I bought a triplex where the Seller (not a foreclosure) was lazy and didn't want to put in hot water heaters even thought he got full price offers.

I called the agent and it sounds as if the issue was really with the front porch allowing water under it and causing water to leak into the basement.

Reduce landscaping service costs, reduce water consumption, reduce other utility bills, etc…

my guess is just water creeping in over the sill plate for both situations...but alas; I am not a structural engineer :(Happy to talk shop with you about the KC metro REI arena.