Phase 1 environmental testing has been inconclusive, and a grant from the state has been awarded for phase 2 & 3 testing with the balance going to any clean-up.

He/his sister have taken over power of attorney for the mother since her mental health has degraded over time to the point where she cannot make conscious decisions on her own.  

Hi Jaylyn, As a Realtor, I am very conscious about my communication and my responses.

@Roy N. broke it down really well.It's not just financing but countless other costs with what's considered commercial dwellings (6 or more units), environmental, insurance, etc.Feel free to DM me to go over some options for residential, and depending where you're located I can likely find you a really good commercial broker. 

In some "blue states," it takes months of meetings, permitting, and environmental studies before you can even break ground. 

My property manager argues that I should pay for water because:    -  If water bills are unpaid, the City of Grand Rapids can put a lien on your home even if the bill is in your tenant's name    -  The cost of water paid by the landlord is offset by higher base rentsMy thought process is that the cost should be passed to the tenants because:    -  With the tenant paying the bill, they will be most usage conscious and overall cost will decrease    -  I am skeptical that having the landlord pay for water results in a dollar for dollar increase in base rents    -  I have always had the philosophy that as many utilities should be passed to the tenant as possibleMy plan is to push my property manager to change leases moving forward so that tenants pay for water, but I wanted to get the BiggerPockets community's thoughts in case I am missing something here?  

Specifically are there environmental shifts that might be happening in the area?  

I consider following two links to be a good source for REI education:https://www.biggerpockets.com/forums/311/topics/227602-difficulty-selling-rental-properties-at-loan-amounthttp://www.indystar.com/story/news/courts/2016/05/23/environmental-court-issues-jail-order-for-california-owner-of-blighted-memphis-properties/90544714/Good Luck InvestingVivek

If you're going to consciously choose a lower return it better be offset by less risk.

If there are wetlands anywhere nearby, a conservation or environmental department may require permitting as well.