So for a property worth $425k, needing $80k in rehab, I would have been in the $240k range.

I plan to submeter the water and transfer that expense over to the tenants.

You don’t want to close on the house and then go and find out a tree fell through the roof last week or a water pipe burst.

I'm searching nation wide for multi family in the $2mil range. 

You get the idea.That area starts to touch Terrell Hills, so some of those are more pricey... the range I have for 2 Bedrooms in there goes from $620 - $1700. 

She actually complained in one sentence about the water damaged walls and her son's asthma.

There was a final walk through of the property, but, as I didn't know about the pipe burst, I didn't know to look for water damage (even after I was made aware of this problem, with an untrained eye, it's hard to notice issues besides some sagging drywall and water drips on parts of the wall) and some part of the wood floor coming up outside of the bathroom door.

If they have a larger boat they need a place to put the boat in and out of the water. 

Exception: Units that contain fewer than two bedrooms.404.4.3 Water closet accessibility.Every bedroom shall have access to at least one water closet and one lavatory without passing through another bedroom.

There's usually a significant amount of rewiring to do when breaking up electrical connections, and separating water usage can really be tricky depending on how the plumbing was run.