The seller could just hire a tax service to notify them of missed tax payments, so the complexities of impounding can be avoided (title company should be able to help with this).

A lot of apartment complexes in my area divide the water bill by the number of units and bill the tenants for it.

@Frederick Jackson - I know of a few off-market apt complexes available in greensboro.

As long and complex as it is, it seems to create a greater air of legitimacy and a level of comfort for the seller.  

Hi @Kevin Polite, you could probably spend anywhere from $5000 to $8000 for this, and possibly more, depending on the complexity of the layout of the existing area and how the new vaulted/cathedral ceiling will be framed in.

In less than a decade I will sell my liability (personal residence) and buy an apartment complex with tax free proceeds.

Opinions on purchasing apartment complexes instead of multiple houses?

And there are a few ways to accomplish "no money down investing," that are too complex to put in a quick answer here. 

Rich Weese as a good sized complex in Garland.

I might jump in and buy another complex if its in my strategic stronghold.What area of town do you plan to focus on?