This sewer line runs under 2 of the other subdivided lots that were intended to have houses on them about 400' away and ties into a city main 1 block away from the houseOct 2008 - I purchase the home and everything is great, assuming all is per plan.2010 - Developer sells one of the lots that my sewer runs under to the water district for a future clean water well site. 

and deal with power lines, water lines and sewer, maybe seal the well. 

Take the year to do powerful renovations like the kitchen, adding bedrooms and bathrooms and updating what needs updating (up to the standards of the other renovated homes in the area).

This allows you to buy using a LO, but you don't have to sell to the tenant, which allows you to have a standard tenant in place. 

doors need to be power washed, gutter needs to discharge further from foundation (deck is uneven and breaking, possibly due to water erosion?)

ON the more risk type product we do land speculation and Land entitlements but the returns blow most any cash flow at the the same dollar amount out of the water..

@Kendric BufordRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

First you need to learn to separate the following:Maintenance: usually things related to wear & tear or tenant damage.Repairs: usually broken items like doors & windows, caused by tenant or nature.Capital Improvements: usually expensive things that wear out: hot water tanks, furnaces, roofs, etc.The seller is correct that Repairs & Capital Improvement items should not be a factor for awhile (ALWAYS get your own inspection to confirm).

The city requires water for a bathroom and fire hydrant.  

However I have had to replace some major appliances recently which had put my in the defecate and added to my motivation to sell (Hot water heater, two refrigerates and a washer/dryer).