With management in place and appropriate holdbacks for cap ex, maintenance, taxes, insurance, water, etc it has cashflow of 900/month even as a pig.  

During the next rain, the roof leaked again (water was dripping through seam of the ceiling and pooling underneath the paint, causing it to bubble).

One tenant took 12 hours to tell me that he had no water in the middle of winter.

Told the guy , have blankets , fill the tub with water , have flashlights . if the electric goes out and it gets cold , open all the faucets to drain down the house .

It doesn't get any better than this..until you are snorkelling these waters, it is amazing! 

I have capital that has produced disappointing results in convential investments  I am considering investing 60 - 80 K all cash on a town home rental  this will give me a chance to test the waters and see if I want to go bigger  jay

For this property, currently water, sewer and trash are owner-paid.So, here's my question: how can I convert water, sewer and trash over to tenant paid as efficiently (and fairly) as possible?

I recommend minimum 4 coats with poly.  2 seal coats with buffing between and 2 final coats  You can use water base as  well if you prefer, finishing will dry faster allowing for more coats.

When qualifying a property, why does it matter how much it is under water if the bank will still only be able to get the highest bid at auction?

1) Scrape popcorn: $25002) Add a tankless hot water heater: $2500 (opens closet in house and resolves code issues with existing tank)3) Pergo XP flooring through all house besides bathrooms