Kitchens need remodeled every 10-15 years to maintain high rents, roofs go bad, HVAC, water heaters, etc.  5% will likely not be enough to cover these items when they come up.  

It's not on the water, but walkable to  a beach and part of a HOA with marina (no deeded slip but access to boat ramp).

(Ex: I would like to replace the old plumbing with PEX, I would like to add a bed/bath in the attic of the upper unit and water heaters and boiler are on the older end of their life cycle.)  

But if you have a brand new roof, a brand new water heater, etc. then you shouldn't have to replace those in the first few years after owning.

I get copies of the water bill for the townhouse I have a tenant in.

Its in Missouri, city water and city sewer. 22 pads all rent for $700 (POH) and currently all full. 

Personally, I'd prefer tenants not hook up appliances to the gas and water lines in my units.

Trails and forest behind the house, brand new gutters, 2 year old water heater, 3 year old A/C. 2 car garage with large, built in work bench.

Trails and forest behind the house, brand new gutters, 2 year old water heater, 3 year old A/C. 2 car garage with large, built in work bench.

Another thing to think about is the high relative cost of taxes to the land. didn't used to be that way.. but county governments, water districts  have found out ways to add FEES to the land.