Water and sewer will vary a little by usage in most jurisdictions.

The other considerations noted by other posters are valid, but when you weigh them against the high risk of extended vacancy, ending at the beginning of winter is to be avoided at all costs.  2 months of added vacancy is a 16.6% loss to annual income. 

I am wondering with what high population growth with this town and the area around it if it is a good start to purchase a townhome that I would be renting out.If needed any town within a 100 mile radius of there I can venture out to.Thank you!!

Sorry, but with so many questions, this scenario stinks to high heaven.You will be lending in second position at best.

Then the lender will borrow you the $200k at a very high rate hoping you fail to make payments. 

Electricity is functional in the property, but I have not gotten the water to work yet.5) Insurance PoliciesI was informed by a fellow tax deed investor to obtain builders risk or vacant property building insurance policy soon after the deed is recorded under my name?

Any advice would be highly appreciated along with some general contacts for property management. 

For example, cash flow might benefit from areas with high rental demand, while appreciation might be better in growing markets.4. 

In most cases I was told that they had high risk carriers who would write a policy, but they had limited protection and higher premiums.  

They're taking massive fees 2% on assets they manage, 20% on increases in net asset value, large salaries for only $7-8m assets, they are self dealing with a $2m in promissory notes that pay Dutch's other entities 10.95% interest. i think the 36% return might be before all these fees or for his 3 other entities that lent the company money at a very high rate.source: their sec filings https://sec.report/CIK/0001721...