How painful would it be for you to have to pay $1000 for a new water heater 6 months from now if something like that happens?

people dont realize plumbing isn't meant to dispose of anything but water waste and tp. 

Mine has roof, floors, appliances, hot water heater, hvac, exterior paint or siding, bath and kitchen remodel, etc.

Engineering , store , pool pond , roads , water, sewer , electric .

The owner pays for gas and water.

Here's my breakdown of the current prop im looking at:Listing price: $130kunit 1: 3BR/2bath 1329sqft $700monthly rentunit 2: 2BR/2bath 1329sqft $700monthly rent2 car garage used by both tenantsexpenses: 239/month taxes, 200/month water bill, 100/month insurance + umbrella policy, 50/month garbage, 5%/5%/5% for repairs vacancy and capXWith the current rents of these long term tenants it makes $132/month cashflow with a 4.34%CoCROI.

If this can be done w/o a building permit then step one.3) you will need water in both units.

Also look at water delivery capacity and sewer capacity as well as potential parking issues.Checking the zoning to be sure they allow a duplex would also be a good idea.Good Luck!

Anyway I have about $135k available on my heloc. sale price on the duplex is $279,000, so 20% is about $56k. the house is perfectly livable as-is, but at $60/sqft and properties on the block selling for $140/sqft i think there is room for some forced appreciation. the building is currently a three-floor duplex townhouse, one unit is the ground floor and unit two is the top two floors. all floors are basically the same floor plan. the second floor has a kitchen/laundry stacked above the first floor kitchen/laundry. on the third floor, the room is in the same place and empty, but utilities (water gas electric) are already run and in place for adding a third kitchen/laundry, so conversion to triplex would be simple as installing cabinets and appliances and building an exterior staircase up to the second floor rear deck. the three 2bed/1bath units would rent for $1000-$1200 a month each, conservatively. we would have to find somewhere else to live for that to happen, but that is our 1-3 year goal anyway. would it be better to make the bank loan smaller with a bigger down payment from the HELOC?

My father has a 401k and is open to diversifying into real estate.Does my low income tax rate mean that the depreciation I may not be able to apply to this place is water under the bridge?