Also, get a good attorney and a good CPA, given that the laws and taxes are heavy.4- It depends.

The plumber insists that this is definitely a city issue, but I’d like to hear from others who have dealt with similar situations.Would the city reimburse or help cover part of the expenses for the secondary cleanout?

However, before you do so you should ensure that your revenue from rental income covers ALL your property expenses in the townhome, including mortgage, taxes, insurance, maintenance/repairs, vacancy, property management, etc...

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is expected to be higher, you may consider an umbrella insurance policy.

My plan is to funnel the rental incomes from all three properties, along with my W2 income, back into the HELOC while covering all expenses from it as well.

Would it be reasonable or unreasonable to tell our tenants they need to cover the cost of the repair, several months after we had told them this guy would repair it for free?

Also, based on the scope you shared  it's a heavy lift to complete the work description for $45K while leaving any profit for the contractor.

Texas does not have a reciprocal agreement meaning TX agents will handle the deal but the buyer should cover my commission.

If it's the difference between $1800 and $2200 but you have to cover utilities too, not worth it. 

The note from the first seller is only $88,600 so you have more than enough equity remaining to place it in second position which leaves $61,400 in equity on the new property or about 4%.The first seller continues to receive payments and has sufficient collateral to cover the note.