I told him about the townhouse I posted about above (which is almost identical to the newly purchased one) where replacement value had gone from $160,000 to $200,000 in just 2 years and the premium had gone up by $160 (16%) in those same two years.

An identical property can sell for 5-10% higher in April-May then it would in October-November.

I have heard horror stories like construction price increase, project not completing on time, construction quality isn't good or equipments breaking down soon, etc.

So I know exactly what equipment needs to be brought in to supply an apartment complex, including an entire city, with clean, safe and pressurized water. 

I have a background in marketing so that might be something I could equip myself with.

@Kyle BuchananToday’s investors should be equipped with not one but several financing options before approaching a deal.

Best guess on sales price given a short track record would be maybe $350,000-$450,000    again +/-.3- Less likely to be able to do this would be to purchase the business and then sell the equipment as a start up stlyle sell.

Everyone is telling you to contact plumbers, and I have to disagree due to the fact that most plumbers are not equipped/ not interested in a job that is going to require this kind of digging or tunneling(that is why they are giving you outrageous estimates).  

One way to get around this (in some municipalities) is to but the real estate for the assessed value and anything above that price would be attributed to the "business, customer list, seller's good faith, phone numbers, leases, websites, equipment etc."  

Section 179 is a deduction set up for large business machinery, as well as furniture and office equipment.