I recently got into the rental property game in urban Indy and I've been drinking from a water hose the past year.

When I show up yesterday evening to inspect the problem and check for water damage etc.

A lot of water damage to the entire subfloor, the bathtub was tiled, but not sealed properly and black mold was around almost all of the grout.

Landlord paid hot water will require you to install individual hot water heaters and run lines.

Other coverage to discuss would be Water backup and equipment breakdown.

Location is prime and has lots of water, wild life, fish, birds.

Your capex budget for a condo will include appliances, hot water heater , floors, maybe hvac, bath and kitchen remodel.

I would also add in some number for "reserves" on a monthly basis for each unit, perhaps $100-$150 per unit per month to start; you want to make sure you have some funds available in case you need to replace a roof, hot water heater, etc...

So, our regular plumber mentioned that the price of water heaters looks like it's going up significantly. 

Unless the property is under water, that seems expensive.