Now she complained the issue of toilet fill valve which caused unreasonable high water bill and claimed it belongs to wear and tear and a plumbing issue.

Even normal wear and tear might need to be dealt with.If either of those things happen, then you have new tenants who are put in a bind.

I average about $500/yr on average, and in most areas common wear and tear are not able to be withheld from deposit.  

I know it sounds strange, but these are hard working rooms and get more wear and tear.

Insurance doesn't cover maintenance related issues or "wear and tear."

This reminds me of one appraiser who came in to my office almost in tears.

For me if I was not doing deals I would be bored to tears :)  only so much golf and fishing one can do .

.$750 rent * .95 vacancy * .98 leasing * .9 property management = $628 gross rent$75 taxes (will vary by city)$50 insurance (will vary by city)$50 trash/water (will vary by city)$175 cap/ex wear/tear w/ averaging out bigger ticket items dividing their cost by life span.

It's expected to be a tear-down.Why did you consider Jackson?

I am considering buying land and learning ground up construction, so just wondering how much progress you have made (if you decided to subdivide and also if you did a tear down and rebuild or just renovate)