There are no utilities in place, no septic tank and no well. 

Plus for its high cash flow potential, utilizing a 1031 exchange to reinvest gains effectively made this experiment a relatively low risk for me.

The mortgage company gets paid off first, then in a traditional sale, the rest minus agent fees and utilities and closing costs goes to the seller.

@Rick Albert   I may get a lot of push back from the team but I split my utilities on my ADU the conventional way....each dwelling has its own meter for water, electric and gas. 

After all PITI, utility, and services (lawncare and cleaning) costs I have $7,225.I set aside 25% of this for my maintenance fund.The remainder funds my lifestyle, wife has a Tesla, and quarterly vacations as well as business growth.In 2023 I am tracking to build 4 duplex units designed as room rentals funded in part from a recent land sale.

Depending on how long you have been in the first property (based on your interest rate, I am assuming 3-4 years), have you explored the option to utilize your FHA again?

.- Good luck getting them to pay their portion for the duration of their lease- Be careful including utilities in the rent as they then won't care about a running toilet resulting in a $500 water bill.- S8 tenants don['t want to pay application fees- S8 tenants cry broke about paying security deposits- S8 tenants in the program for 10+ years claim ignoreance on filling out their paperwork because they've learned a desperate landlord will do it for them.If you want a S8 tenant, you MUST advertise on www.AffordableHousing.com

@Vivian Yip  We just use a very generous utility cap. 

Landlords can enter a tenant's property for a variety of reasons, including: Making repairs or replacements Responding to a tenant's request Removing unauthorized window coverings Preventing waste of utilities Changing filters, testing, or replacing smoke detector batteries Inspections Helping with an emergency inside the unit Posting a notice of eviction"Research your state laws because some of your comments indicate a lack of understanding of the landlord/tenant laws where you are operating (like threatening the tenants to keep the security deposit if they don't respond to you, I doubt that is actually a valid reason to keep their deposit, or evicting for late payments, or charging the tenants for your warranty repairs because you missed your 11 month inspection window which was your responsibility, and it looks like your lease says you can charge up to 18% interest for unpaid fees, is that actually legal?).

Lots of investors utilize rentometer.com.