The homeowner for the lot had lots of water problems but they had never asked about it because they were building new. 

While there's a smaller pool of potential tenants to choose from, there is also a very small number of available rental units.A few expenses I noticed missing from your numbers were vacancy, insurance, and capital expenditures.

Gas furnace/water heat for SFH's.I throw all that out here to ask what you feel makes sense?

There are mushrooms growing in spots also (see photos).When looking through the windows I can see where the water is leaking from the refrigerator plumbing and looks like some of the hard wood is starting to buckle and the trim has absorbed some water.

There is a pretty small pool of like-new houses near downtown Ann Arbor, especially those of decent size, and we have a lot of transplants coming from all over the country to work at the university or other businesses.

All roofs/heat/water are new within last 5 years. 11 units are rented, 2 are vacant, and 3 need to be rehabbed.

Asking price: $245,000 - reasonable for the areaEstimated Monthly Rent under current leases: $2500.00 - on the low side of the range for the area but the tenant base is long term and stableAnnual Taxes: $5000Annual Insurance - Unknown/information requestedUtilities - Unknown/information requestedBuilding Owner pays for alarm monitoring,electric and water bills - have asked for monthly cost averages but do not have yet.Individual tenants pay their own internet and phoneDescription: 2400 sqft, brick building with a 10 space parking lot, good location Known upcoming repair is HVAC for the downstairs (est $5k), upstairs HVAC has already been replaced.Thank you for your time as well as your opinion on this deal, recommendations for additional questions, additional information etc. 

Common lighting, trash, water, heat, how is that all handled?

I padded the repair costs a little because some of the repairs have water damage that won't truly be revealed until we start ripping sheet rock out, but I was not unreasonable. 

In Texas AT LEAST you need to have GFCI outlets on all kitchen counter surfaces, outside, garage, bathrooms etc. this home had the outside ones since the pool was relatively new and the outlets were put in when the pool was put in.