We tend to attract recent university or college grads to out unit, young people that are still looking for a less expensive place but are sick of living in houses with 4 other people.For the last 7 years we have had a nice chocolate brown laminate flooring down there but there's been some water damage in one room.

Tenants pay all utilities except for the water bill.

@Jonathan Pendleton Each unit needs it's own source/meter for electric/water/gas.

Super-priority liens are created by statute... so things like X months of HOA dues, taxes, water, etc. can be given priority pursuant to local law. 

I just visited a family members $1m newly built custom home on the water. 

I only wanted a duplex so i can test the waters with 1 unit; as opposed to 3 or 4.

I appreciate in advance all of the expertise and different perspectives you all have to bring to the table but more importantly your willingness to share!

The hard part is preventing slow water leaks that cause mold.

Definitely do your research there because if you violate Fair Housing laws that can get you into more hot water than perhaps anything else. 

Should be 12800 incomeOur expenses are approximately 10k a month on average-3300 for mortgage-900 for insurance -3500-4000 for utilities (water and sewer are provided by us) and we have on site laundry that costs us 1400 dollars included in those utilities. -1000 to the resident manager-500 to maintenance guy-600 taxesOur issue right now is that the previous landlords let the tenants slide on rent sometimes.