He then let me know that no obvious sources of a leak are known of in the home and no evidence of leaking is happening, but the high water bill is an indicator of a leak somewhere.This brought up a fundamental question that I wanted to put out to you and learn from you on:  if the tenant pays the water bill (it is in their name with the city) and there is  SUSPICION of a leak, who's responsibility is it confirm (and pay the fees that would be associated with confirming and/or finding the leak)?

I was told by the property manager we can write a letter to the Association that will be given to counsel.  

I would join your local apartment association before doing anything.

A standard lease from your state realtors association can probably be found online for free.

The association hasn’t answered their phone yet today.

It may depend on your state...in our case we use the standard Texas Association of Realtors lease which has some fixed language and a fill-in the blank for the number of days...we just run with 15. 

@Paul StermanI would recommend using (Purchase price + rehab costs) / .8If you are looking for more or less LTV than 80% in the future it will be easier for you to convert 75% to .75 than it will be to calculate the associated markup to margin conversions.

@Brandon SalmCheck out Polk County Real Estate Investors Association when you get here!

@Paul Politte the Triangle Real Estate Investors Association is very active: https://www.treia.com/

I was elected president of a contentious and underachieving condo association where I was living with my wife.