I contacted the Title Insurance Company and they paid the municipal bills and then went after the former owner for reimbursement. 

See what the difference is, assume that is due to the laundry and reimburse the lower unit tenant that much every month to cover the additional electricity usage.

However, if you are looking for the best tax free fringe benefits, reimbursements for education expenses and you are managing other investment properties then a "C" corporation may be preferable.There's not a one size fits all approach to proper planning.

Even with great W2 income and credit, banks just weren't lending much then, especially investment properties.If you do find someone to seller finance the DP, you might have to have the funds first, close, and then execute the seller finance to "reimburse" the DP to you.  

If so, many states have a fund to reimburse members of the public for losses, then the commission goes after the licensee for payment. 

Ok cool thanks I just heard you have to pay for first phase then they reimburse you then pays you checks to get others done 

Depending on the lender and the loan you may start paying on that interest when you get the draw reimbursement or you may be paying on it from closing even though you don't yet have it in hand.

Is there going to be any lawsuit that reimburses us?

Be proactive and when you figure it out, consider reimbursement because it sounds like it is not the tenants fault at first blush.

Pay the bill yourself, then reimburse yourself by charging the tenants based on a formula.