The Housing Authority and firre department declared the unit condemned due to the fire and smoke damage and the fact that the water, and gas were turned off.Remediation and construction to repair damage were started immediately as my parents tried to decide if they would evict the tenant based on nuisance. 

I plan on using a FHA loan to purchase my first rental property and I'll occupy one of the units myself.1) Gross income (yearly) - $49,3802) Vacancy rate of 6% - $2,9633) Income - Vacancy = $46,4174) Expenses (yearly) = $18,234.24    Taxes = $6,962    Insurance = $1,600    Water = $1,350    Sewer = $2,672    Maintenance = $2,071    Gas = $1,500    Electric = $500    Replacement Reserve = $1,200    Advertising Fee (1%) = $414.545) Net Operating Income = $28,1836) Debt Service = $19,761    Assuming 3.5% down-payment, on $295,000 home value, 5% interest on a 30-year loan7) CFBT = $8,421.28I don't know if I did the the analysis correctly on this but any feedback would be helpful.

If it is in Philly gas should be available.

Here they just stamp a signature certifying its valid.  

All rents would be incl. utilities as there is only one meter.Expenses:Property taxes: $3120Utilities: $6,616 (includes all hydro, heat, furnace rental, water incl. water heater rental)Heating: gas powered hot water boiler.This is the nicest duplex I have seen in my area, and it's not currently listed on MLS which could make a cheaper deal possible if we don't use a realtor.

Separate water, electric, and gas meters for each unit (owner pays water and trash).

Since we have plans all weekend anyway, no reason to waste most of a day and gas driving to Waco.

They were below market rents and the seller was paying utilities, then they lowered the rent a little and had the tenants take on the gas and electricity.  

Finding good deals is not just about offering some % below the ask, it is finding that property which is already listed below its current value, jumping on it quickly and having a strong offer (strong is not just price but time to close, limited contingencies - none is better, and valid POF - proof of funds vis bank statement, not some lender letter.)

Your accountant would be the one to ask about taxes and so I want to caution you as to the validity of what I'm about to say.