There was a case in Cape Coral Florida where the home owner wasn't connected for both the water and electric.

We replaced hot water tank, walls, doors, vanities, fixtures, etc... 1b) Do I need to break down my pre-market expenses into the Schedule E categories or can I leave them in bulk under "supplies" and "services" like I currently have them?

.$25k in materials and laborMonthly holding costs: $557(int payments, taxes, utilities, insurance)House info as purchased:House built in 1971 - Solid B neighborhood - Great Schools2081 sq ft4 Bed, 2.5 BathNew RoofNew WindowsNew HVACVinyl SidingWork to be performed:New cabinets and counter topsLaminate downstairs and carpet upstairsNew vanitiesNew light and plumbing fixtures(tubs staying)New water heater Paneling removed from den and replaced with sheetrockWindow removed from eat in kitchen and replaced with slider to access the back yardSmall deck built off of sliderAnd obviously paint throughout.We will probably price it under market value and hope to sell it quickly(30-60 days) at $125k which would give us a profit(after commissions, closing costs, and carrying costs) of $22k-$23k.  

The regulations have gone out of control and the storm water management alone will run into the 10's of thousands.

As with any clients you will want to vet them when you meet them to see if they are actually serious or just fresh out of a weekend crash course.

The buyers do not want Jim Bob fresh out of training that has little to no clue what he is doing.

Our only other significant monthly obligations are water and electricity.

We replace the lists with fresh data every 6 months and keep on rolling...But there are special groups like expired listings or tax liens or divorce that we might just hit once or twice near the event and not necessarily continue mailing to them.Also, think about how DIRECT MAIL fits into your larger marketing strategy - we also like OUTDOOR (billboards, bandits, etc.) and ONLINE (AdWords).  

Looking for buy-out, rather than incomePut in a new water heater.

You can look up the local utility company and call them to find out the cost of water and sewer.