It is not illegal to raise rent to cover increased utility usage so i would be very surprized if charging for water is illegal.

As far as the individual expenses go (excluding utilities) I start with 8.34% or $187.65 (one month rent) for Vacancy. 

I am planning to utilize hard money to roll in $200k (plus the remainder to purchase it) to completely revamp the exterior of all units and renovate 9 of them.

Near term we are looking to move into buy and holds, utilizing the BRRRR strategy, in and around Indiana, particularly the greater Indianapolis area.

It's a little bit more work, I pay the utilities and rebill the tenant.

And have you considered utilizing Hard Money for the next deal?

Thanks Alex, I could utilize those resources that was something I kind of wrote off.

We have found one for 150K, and I am estimating 1600/mo in revenue (split utilities).

@Adam FrancoFlips are recorded at your regular income tax rate, subject to self-employment tax.You figure out your final cost basis (purchase, rehab, insurance, property taxes, financing, permit fees, commissions, utilities, etc.) and the difference between the sales price and the final cost basis is the profit made that will be taxed as ordinary income.You should speak with a CPA to help organize things and try to minimize the tax impact.

It also has separate utilities but shares the septic system.