Isnt hot water electric?

This will require waterproofing the basement, moving some piping, adding a doorway, moving heating and water heater.

Taxes, Insurance, water/sewer will be $10k.

My mortgage, utilities (shared), maintenance reserves, and water would be $1,000 per month. 

A HELOC on your residence can be a useful tool in real estate but I would certainly be cautious about using that up since that is what could keep your head above water in a financial crisis in either your personal or REI lives.Play out some "what if" scenarios. ie, What if someone loses their job?

I've read before on here about having a plumber come out to do a pressure test on the water/gas lines and electricians bringing out generators to test electrical.

@Dakota Evans no hoa or water fees?

A tenant recently let me know that they observed an oddly high water bill. 

@Ernes Sahic while you can certainly get lists surrounding pre-forclosures, short sales, probate, Evictions, Loan Mods, Tax Sales, Divorces, Hospital Liens, Code Violations, Appointment of Substitute Trustee, mechanics liens....I mean you can even get a list of people who had their water shut off....but I don't think there's any service out there that will provide a list based on if the property is a 2-4 unit property. 

Account ClosedThe closer you are to a $50,000 price point, the more likely, you want to be closer to the 2% rule than the 1% rule.Items like Maintenance, Capex, Vacancy don't take money out of your pocket every month.You budget for them though becuase you know eventuallyYour tenant will leaveYou will need to replace the water heaterYou will need to replace the roofAnother issue with Turn-key is that you are paying a premium.