we are looking at a $100,000 house updated but still needs about 10-12,000 worth of work but most of that goes into the water heater and new furnace that needs to be installed.

Who pays water/sewer?

@Mike BianchiIt won’t let me put the chart up so I’ll try to word it out Rough estimates Purchase 1,300,000Down payment 30% Mortgage $5,838 Income Lot rent - 23 units X $400 = 9,2002bed 2 bath 18 units X $375 = $6,7503bed 2 bath 5 units X $450 = $2,250Vacancy 12% = $2,184 Expenses Insurance $670 Utilities $ 1,121Administration $ 170Managment 10% = $1,602Repairs 13% = $2,100 , $1,000 per unit per year Reserves $500 Taxes $565Other $860 Cash flow - roughly $2,700 Trash is part of the taxes County water Private Septic

I always submit a FOIA request (Freedom of Information Request) to the city before I buy to confirm zoning, fines, judgments, violations, outstanding water bills or other issues, ongoing code enforcement issues, etc.  

It also included shifting the garage as well as reroofing and upgrading the tankless water heater.

Some providers take the approach that a furnace or water heater with several years of expected life shouldn't be replaced in the rehab, but that the final product should be priced accordingly. 

As in any kind of outbuilding with water and power, a pool house that you can convert, bedrooms upstairs that you could add an exterior staircase to, a home with a big lot that would work for bringing a tiny home in.

Again, I don't know if this theory holds water or not, but it's all I could come up with.Also, the unit I got under contract was a FSBO and was not on MLS, so it seems to me that the brand new out-of-town buyer of the majority of the complex might not have had visibility to this unit being available for sale...maybe. 

Of course, I am in California, but I save tens of thousands of dollars over a 10-year period because now I don't have to pay for water, pay a gardener, or pay thousands of dollars to remove trees.The next thing we do is we usually paint the entire outside of the apartment building to make the place look fresh and then you won't have to paint it again for 20+ years.

What is the age of the major mechanicals (water heater, AC units, etc.)5.