I started with 2 and wanted to test the waters, so far it’s luke warm.

The tenant understands that the property of the Tenant is not insured by the landlord for damage or loss of any kind (action of third party, fire, water, theft, vandalism, storm, heat or cold, electrical damage, pests, mold, accident, etc.), and the Landlord assumes no liability for such loss.

(And I would tell you to not buy a property that doesn't cash flow unless you have significant resources behind you that could absorb anything that could come at you - like replacing a $5,000 AC one month followed by replacing a $1,000 hot water heater the next).   

I would also look at the availability of public water and public sewer, if not at the site how far away are those services.

The seller must think he is sitting on a really hot property, or the buyer is asking for too long of a DD period.

My rental condo in Asheville, NC was spared damage from the flood, but when the city finally turned the water back on a few days ago, they somehow overpressurized and blew out a fitting inside a wall. 

Just trying to gain a sense of hot or cold. 

The only thing that sounds out of the ordinary here is the water bill

I have no idea what performance of the first two funds has been like, and maybe they're blowing it out of the water, in which case they might partially justify a more expensive carry regime.

It's hard to say offer amount without knowing the rehab part since that could blow this out the water.