I am surprised they are running out of hot water fast, the smaller tanks should heat the water faster than the larger 50 gallon tanks, maybe look into small tank heaters with more heating coils to heat the water even faster. take a look at this one, available from HD too https://www.rheem.com/product/marathon-30-gallon-e...that one may deliver enough hot water for your tenants.

Hello,I have a "flip" house that is nearing completion, Its a 5/2 split level and the market is pretty hot in my area.

My partner in the building was on the top (3rd) level), we owned the whole building together. 

I feel as now its time to take it to the next level and find my own deals as I have been primarily buying from wholesalers.

If you can find an entry level position with a commercial broker or someone like RealPage or Pinnacle I think that could set you up for a great lifetime in real estate.

Nothing will turn a good tenant into a miserable one faster than a mooching girlfriend/boyfriend or a neglected animal.

I dont think prices in Elmwood are going to get much higher, if anything theyre more likely to level off a bit.

Do I need to keep the same level of total equity in the replacement properties as it was in the relinquished property ($180,000 - $102,000 = $78,000)2.

Granted I think the stigma of the area is worse than it really is on a macro level, but on a micro level it could be a lot worse. 

Thinking about this from a potential purchaser perspective, purchasing a property that has the main two levels metered separately from the basement could be a positive to someone with an investment mindset...but someone that just wants a vacation property and wants to use the whole property might find this annoying to have two separate bills.