Whatever type of water heater the building has, (natural gas, electric, propane, should have another common area meter that powers all the things that are shared. 

While I do have a couple of limitations imposed by my broker, I understand the thought process behind them and can easily find an alternative strategy that works for everyone.When I need support, it's there.

In the future, we are probably going to look for cheaper alternatives for flooring and cabinets.

You intend to do something beneficial in nature in the future with it.And you have extra cash laying around and other investments on point.

But even the hint of an alternate use in the units (hair salon downstairs) suddenly classifies this as more expensive 'commercial' loan. 

@Kevin Dougherty  I am trying to find an alternative to SFRs.

This market cap rate is the average of cap rates of recently sold comparable apartments so naturally I expect to pay that cap rate.

Alternatively, i have looked in the midwest states and it seems there are many properties that have positive cash flow potential.

I've always been naturally frugal and have been a huge proponent of passive income but after months of reading, researching, and listening to the BP podcast, I've built up enough confidence and a tiny bit of knowledge to make it happen. 

Evidence would be a lease in the tenant's name, a current utility bill in their name at another address, and/or a copy of a current bank statement with their alternative address on it.