he said insurance is roughly 700 each yearly. he said tenants pay all expenses and pay extra for their electricity and water and stuff. what else am i missing?

There was no water damage from the outside elements.This is a short sale home, asking 229,000.

You might get at least an idea on how much life the roof has left in it, and how old your water heater is, HVAc, heating system, etc and figure out a number to set aside for replacing those someday. 

There was no water damage from the outside elements.This is a short sale home, asking 229,000.

During the inspection we noticed some water seepage in the basement. 

Yes you need to budget for it even if you are doing it yourself.Is it near the water?  

But there are plenty of other ones that are reasonable turnarounds (enforce collections, get rid of Park Owned Homes, submeter water, raise rent) that I do see @ 10%.

Hi Walker,We typically will purchase individual or small pools from a fund manager or through a credible broker.

The tenants are on separate electricity but the owner is paying for the water which is a min. of $120 mo.There is a property across the street for sale for 125k.. he said himself that was too much and mentioned lightly he would sell his for 110k.

It is lucky a roof even lasts for 40 years no matter what the material is...You may also keep an eye on other expensive things like water heater and AC.