RE losses are there to make you hold ground and tread water tax wise and limit your income tax liability *from the RE business*, so you eventually pay capital gains (long term) at sale or even better, 1031 into something else without paying any capital gains then.

If you're tossing out 350 now, the tenant knows there's WAY more on the table.

HOA dues are around $315/month and that includes water and utilities. 

Almost all new plumbing plus a new larger water main.

That's exactly what I was thinking, but definitely wanted to check before I got in any hot water.

I’ll review financials from the current owner but assuming the tenants pay water/electricity shouldn’t I be able to use the math above?

We have two other tenants (a bakery and sports bar) who the previous owner prohibited from having tables and chairs out for customers.  

I would jump in now.. the water is always warm.

You have to bring something to the table.

To offset the experience, you should be prepared to bring a little more money to the table.