I recently bought a house and increased the square footage through a conversion so I have about $200k in equity.

@Bola A.5.5-6 % is the going rate in my local banks that I checked on recently

As far as following up with the owners would you recommend to go and talk to them directly or regularly send them flyers and marketing materials (recently sold brochures, market reports etc...) to keep in touch with them? 

Trying to estimate water sewer cannot normally be done as it depends on where you are.I own a duplex in New York City, and in the recent year, water/sewer ran me around $200.00 per month, double what it was 10 years ago.

I know there have been numerous recent apartment projects completed in the past 6-7 years which likely contributes to the available units.

Total Is $1350 monthly.Based on recent sales in my community, I believe that I can get somewhere around $170k for my coop.

For example, Bridgewater (Bridgewater State University) had two duplexes sold recently at $542,000 and $575,000 - still over your budget.I think you're going to have to raise your spend or consider another area.

Hello All-I closed on a property  in April and after the recent rain in DC I discovered the floor buckling as well as warped drywall and other damage.

@Bob Okenwa I have recently heard of folks adding their renovation costs right into the hud and therefore able to get all or most of their cost plus renovation costs back upon refinancing.

That may have health consequences for your residents years down the road(recent research shows.)