All utilities are at the street. 

When there's tenants already occupying the property, there's often times different leases that were signed among the tenants.Additionally, renting by room usually sees higher tenant turnover which in turn causes more work for the PM.Other challenges to consider:- Disputes/conflicts among tenants (different personalities if a tenant doesn't know the others prior)- Occupancy limits- Splitting utilities (what if someone uses more water?)

We have a pretty rural place and Idaho has some of the most strict laws around marijuana use so that hasn't been an issue for us.Smoking in general has been a problem a couple of times.

Utility Costs (Water, Gas, Electricity):- Paid monthly by the tenant unless included in rent.

It felt like a no-brainer for the value of the land, but being able to utilize a traditional mortgage because there was a clean yet simple 3 bed 2 bath house on the lot made the deal even sweeter!

The basic idea of having an appreciative asset that I could potentially utilize later in life in a multitude of ways is exciting. 

If we made a mistake it was not utilizing our mentor even more.Deal analysis is something like this:Deal 1  sold this week at auction for a loss, probably a $4,500 loss, this is in my profit calculation.Deal 2 Bought for 20k sold for 45 with 10k down and 35k financed for 8 years at 8%  I counted this as a 45k asset but probably should have only counted it as 35 since the 10k has been reinvested and is reflected in other assets.Deal 3, bought for 10k and foreclosed on a non performing borrower, we will be all in for under 20k, and should sell for @ 45k, maybe more if we do owner financing.  

Turn over cost when your tenants leave (check leases), marketing cost to add to the placement and monthly fees from PM, and utilities if those are provided by the landlord.What's your exit strategy?

Using a Heloc utilizes the equity that is sitting dormant, it provides tax relief (once again check with your tax professional) as it is interest income, you can typically get a reasonable rate andlastly there is no out of pocket money.

As for capital, I will be utilizing my HELOC for initial fund on first deal.