But by the time they were finished, we were under contract for $140K.Purchase - $75KConstruction - $22,368Carrying/Closing - $5,052All in - $102,420Sales Price - $140KI was a little concerned with the sales price being so much higher than we started out expecting, but I didn’t need to worry, it appraised at $142K.

Maybe none of this matters and you're most concerned about cash flow on paper because it will be the property manager's problem.

I would be more concerned about the type of tenant than about the numbers. 

However, now that we have an accepted offer, we are concerned about a few things: Before we put in an offer in on the house, we told the seller's agent to let the tenants know that we would be raising the rent from $1250 to 1350, which is market value for the area.

Beyond the easement concern, that's something I will have to figure out when I see it in person - the area where the two property lines meet and how that may appear to a future buyer.

If you feel it is a legit concerns I would consult with local police or other security expert to see what where the property is most vulnerable the best use of of your money is to address it.

Increased water usage is the least of your concerns.

I'm not concerned about asbestos or lead paint.

@Carl Fischer that is my main argument, because we are just starting out we don't have anything to lose, but she is concerned that since we are going to be living there if something goes wrong we could get sued if we can't fix it in time.

As others said main concerns are knob and tube, windows and plumbing.