That water is under the bridge.

So three weeks later it cost me $1000 because of water damage.

Your property is wearing out and you need to account for longer term capital expenses like new roof, water heater, HVAC etc.

One other thing is I'll be on the hook for water/garbage/sewer.

im with John on investing in college towns though because its important to have schools,jobs hospitals and something about the area interesting like here are some examples. a nearby water feature like beach,ocean,port,major river,lake mountain w skiing, or mild climate.

What are the actual heating/water/trash/snow removal costs?

My main issue with a short sale is related to not wanting to damage our credit when we will likely try to buy-up within the next 10 years.Lastly, we're looking at the SFR ($325k target) as something we would live in for five years before renting out as a long term buy and hold - we think we can secure a good 15 year loan that aligns with rental rates in the area.

It's already got access to city water and sewer.

When viewing the house there seemed to be major water damage from the top floor.

Here in Texas renters typically pay for everything - all utilities- water, heat, hot water ect.