You pay to live here and you really have to want to live here to make it worth it.If you love Galveston and the water, fishing, being outdoors, then yes, move here, find a duplex that will pay your mortgage and enjoy.  

The home has well water and I hired a well maintenance company, the system has had some issues since they moved in.

After all the expenses are paid including capex, PM, repairs, vacancy, water,taxes  & insurance.

The rainy day fund is already a set aside amount of cash that I suppose could be invested in short terms (again boring) CDs or purely safe vehicles. 

If it had been a water line, and since water lines are always under pressure when the water is on at the shut off valve, then the leak would have been consistent whether or not the bathroom had been used or not.

We received the new tenants move-in checklist from his agent and it states that water leaks from the ceiling when the tub is ran in the upstairs bathroom.

Instead, mix a solution 50/50 alcohol & water or vinegar and water.I'm in Calif and the house has a Western exposure w/o shade, so to reduce the heat load, we added a tint to the outer pane which reduces the light transmitted into the room.

The house is said to be worth about 370k and the house doesnt seem to have any problems with the water, AC, or heater.

If you're testing the waters, just buy adequate insurance to protect yourself until you have a proper legal structure.

I don't ever see the house greatly appreciating although the area has some potential long-term (but that's pure speculation).