You get stuff like holes in the hallways, broken outside lights, damage to a common washer / dryer (if there is one), that no one will fess up to and will come out of your pocket.Don't be afraid to make low offers. 

Our first thought is the save $ to buy a new home with a warranty and rent a town home (by the water which we love) during the waiting period.

How do I make sure the water and electric bill are all in their names?

That doesn't go very far.In terms of your analysis, you should include any water/sewer or shared utilities.

@Raj Kannan, there are opportunities in every part of the cycle, though not necessarily in every asset type or location.Yes, 50% does go towards expenses, but that's partially because you're putting money aside for the inevitable roof replacement, new water heater, etc.

Also if the home has a basement look into water back up or sump discharge coverage.

Somebody wanting to sue for you backing out of a bad deal or accusing you of selling them a property with defects like unknown termite damage).

. $1 million of liability coverage, Property damage/loss coverage to rebuild, and rental income loss coverage.

Sale price $125,000 I am thinking of offering $60,000Rehab $110,000 it need a new roof and it’s a lot a water damage inside and mold because of it but not all the units are damaged.

I learned this the hard way after half of my copper pipes were stolen, the other half were bent and damaged and one of my brand new windows was smashed in.