Thanks both of you for your suggestions, but only concern i have that it will be difficult  to refinance the properties if the properties own by LLC. 

It seems like the norm for most of the area is that the landlord pays water in small multis but you could set the water up in your name and bill tenants to avoid any lien concerns. 

Liability concerns are very real.

@Jecarl Viray If your CPA told you that you need to form an LLC in order to deduct rental expenses, I'd be more concerned with getting a new CPA than worrying about an LLC.

To break it down even further, if you sell or refinance within, let's say, the second month, you'll be responsible for paying an additional 1-month of interest to make up the 3 months.Hope I explained that well, feel free to message if you have any questions or concerns.

While it is true the properties definitely are not in the best condition (not unlivable but not brand new) and our timeline/budget isn’t conducive right now to a full rehab, what I find the most concerning is the agent is basically telling us this area is a bad place for investors.

I'm not familiar with the area, but from my own research I've discovered that the area is prone to flooding and is also fairly close to a housing projects.Looking for some guidance on whether I should be concerned with my own findings, or if the area is still a solid buy regardless of the location.Thanks for the help,Matt Smocovich

There is also lead paint, which is not necessarily a concern, but I was always telling our manager to be on the lookout for any chipping or flaking. 

What else are you concerned about?

As far as the IRS is concerned, you bought it for $150,000 because it depreciated that much.