If landlord pays water use 60% costs.Any immediate repairs would need to be deducted as CAPEX from purchase price.Verify rents are actual rents inline with market and that there was no first months rent given half off or free which will reduce total market rent per month average per unit.

Because of the location, and the economy in the area, plus lack of water in Cedar Creek Lake, I know that I will probably NEVER find another tenant (at least not for a long time).

.- the HVAC guy, who I count on to fix my tenants' furnaces and A/C the day they go out, and has very reasonable pricing- my plumber, who has unclogged many a drain, changed hot water heaters post haste, and changed garbage disposals and faucets when needed, so I don't have to.- my painter/drywall guy/cleaner husband/wife team, who charge me the same whether it takes 1, 2, or 3 coats of paint to cover the nasty colors a former landlord allowed- the floor refinishing guy, who has done a good job on 8 or 9 floors this year.

Houston has been incredible in it's resistance to this recession.

I would suggest for you to check your local ordinance, whether a utility is allowed to place a lien on a property.The reason I'm bringing this up is that in Atlanta the water company always holds the homeowner responsible for water bills that are unpaid by a tenant.

You have already been given some sage advise, jump in the water is fine.

No, don't touch that broken water line until I can write out an authorization and fax it to you?

These are the projected numbers, vacancy was less, mx/repairs more.Purch: 125,000Cash to close 30,000GSI 21,600Vacancy 4% (so far zero)GOI 20,700Tax -4,100 (actual)Water/Trash -1000(actual)Common Electric -150Mx/repairs 7%- 1500 (needs to be more like 10%)Insurance -600 (actual)NO 13,350prin/int -6,100Pre tax annual return 7,250 I self manage, I do all the maintenance myself.  

The name of the game is to get filled up fast and stabilize and then sell or refi off 1 to 2 years later.450 X 52 = 23,400 month X 12 = 280,800 gross expected annual income.Back off 50% costs if landlord doesn't pay water or utilities. 280,800 x .50 = 140,400 NOI at a 10 cap for resale that is 1,400,400 before resale expenses.700k + 52 units let's say 10k a door rehab = 500k 700k purchase plus 500k = 1,200,000You would really have to nail down cost per door rehab and the exit cap and lease up rent.

Some have mentioned marketing, but that just doesn't make sense for buy/hold and the amount I buy per year.It's been like this since July-August and the water is getting more still.