With a project we have considers using shipping containers as an alternative to brick-and-water (due to delivery cost we parked that idea for another day).

The water heater which looked good was shot.  

There are two conflicting thoughts here, to me:-One says that you are limiting the number of people interested in the condo because they won't be able to rent it out, thus lowering the prospect pool and price.

Currently our water heater is outside in small room not very ideal.My goal is to get started anyway possible and to accumulate properties for rentals. 

All in investment from $60- $80K and what tends to be a better tenant pool.

I am not trying to throw cold water on your plan, but be sure you understand the risks involved before investing.

Make sure you check for things like gated community, pool, ranch, two stories, a finished basement, acreage, etc.

Budgeting 2740 for taxes, 1000 for insurance, 1500 for annual maintenance, and 2560 for utilities.Now on to the questions:-the water in my area is billed on a flat rate of 180 every three months.

Here is what we know so far:Out of state land lord Has been for sale for more than 3 monthsAsking price 240kBuilt in 1981Each unit is 1050 sqft 3/2 with utility roomRent is $1050 (I have not seen the actual numbers this is what the real estate agent told us)Landlord is paying water and trash but don't have those numbers.Two units are currently leased Last roof: unknown AC and water heaters are currently working but do not know when they were last replaced.

You're most likely responsible for the AC, water heater, and anything "inside the box" like plumbing, electrical, flooring, kitchens, and bathrooms.If you find a cash flowing condo, the only real concern in my opinion is shifting HOA management and fees.