Since I bought this last property, it has been a headache, I have to go often to do repairs, the last repair was replacing a water heater of 75 gallons which cost almost $3k (too expensive).

I may have an expensive solution if you'd like to PM. 

When I show my rental to potential buyers I give them 3 years of rental history with the average utility expenses and what I paid for taxes and insurance over those last three years as well. 

I have not heard about this, but it sounds to me like a very expensive way of going if your looking for tax advisory.

Profitability is shown by a positive cash flow.To help with your housing expenses if you want to live in one of the properties, consider the possible rental revenue from the other units.Remember, the specific criteria for a "good deal" can vary based on your investment goals, risk tolerance, and personal circumstances.

After both of our expenses we ended up breaking even after some unforeseen expenses Lessons learned?

ThanksHey Komal, I moved to Columbus a few years ago (from Portland, Oregon which was super expensive) to become a full time real estate investor, and ever since, I've completed quite a lot of BRRRRs, flips, and own a successful rental portfolio here in Columbus Ohio.

The common area is available to all and is not a factor in the allocation of expenses."

You want to work with a professional who will understand whether the rehab that you do would be required to be capitalized and depreciated over years or eligible to be expensed in the current year.Furthermore, you live in New Jersey which has one of the more complex tax laws in the country.

I've completed ground leases for McD in California where the dirt is very expensive and Tenants like McD are ok just leasing not owning the dirt.