In KY, water usually runs about $25/tenant/month so about $1200 annually for a quad with 1BR apartments.  

Figure out what kind they are (i.e. drywood, subterranean, etc); treat them appropriately; remove anything that may be attracting them (i.e. wood to dirt contact, standing water pooling around the foundation, etc) so they don't come back; and fix what needs fixing due to their damage. 

I grew up in Edmonds and my family is still there, but I am living in Colorado Springs. 

Find out why seller is selling, ask for a rent roll, what repairs or updating of mechanicals and roof has been done, how long seller has owned the property, are there pets allowed, are taxes current, has there been any insurance claims where seller did not use money for the repairs, ask for sellers disclosure, are there separate water and electric meters, does rent include utilities or not, are there long term leases or month to month, does deposits transfer to new owner, if there is pets, is the deposit a fee or deposit.

It was a 3 bed / 2 bath everything else looked great.Furnace was good, roof was brand new, water heater was new, freshly painted outside, was going for $200k in a $500k neighborhood.

Roofs last a certain amount of time, water heaters, furnaces, etc.  

I invest in Palm Springs myself, and live and work here in LA. 

The bottom of the door had rotted and apparently rain water could get inside.

Fill the hose and the water will level itself on both ends.

Learn basic terminology to stay out of hot water.