Resist the urge to finance until after you complete the rehab if you can.

Greater Boston is a tough market to cashflow but "Persistence overcomes Resistance" as you may have heard.

The water waste is taking the path of least resistance which is the downstairs toilet.

In addition to causing erosion, running water takes the path of least resistance and finds its way in between things.

Easy solution.Next, if they are paying, I would take @Brie Schmidt's advice and when a deal is imminent reach out to the tenant (via letter we find works best) and tell them the improvements you plan to do to the property and that on X date their rent will increase to X amount.If you are able to work something out with them, whether they stay or go, that is always the path of least resistance. 

Bottomline, the capacity to save and learn right now is key, take the path of least resistence, find an investor focused RE agent, buy quality homes in good school districts, in areas of strong rental demand.  

If sellers resist then offer over asking and then ask for closing costs so the sellers net amount the receive comes out to a similar number. 

If I get push back and strong resistance I put them on my short list of tenants to be replaced.It's my property not theirs and I take care of it how I please regardless of what tenants may think.

What kind of resistance have you had from tenants with requiring or encouraging automatic monthly withdrawals of rent?  

Install mold resistant sheetrock, acoustic ceiling, new flooring, recess lights, replace toilet, vanity.