You need to subtract the mortgage, taxes, insurance, management, repairs, vacancy, utilities, etc. 

The deal:Actual purchase price: 80K (cash purchase / may refinance later)Units: 8 (2br/1ba each)Rent/unit: $350/moManagement: 10% to manage / nothing to place tenantsTaxes: 1600/yrInsurance: 1200/yrFlood insurance: 2400/yr (yes, it's in a flood plain near a river)The positives:Solid management in place (for years) that is eager to continue.

You will need to follow up regularly to insure they are staying on track.Back in the old days of rent to own the upside for sellers was in renters failing to buy allowing the seller to rinse and repeat several times keeping the DP and principal each time.

If your insurance covers loss of rental income that may be another source for capital during that time and may offset the cost of the hotel.If its going to take longer than a few weeks, you may offer to have them stay in another rental property if you have one available until the repairs are made.If none of the above options are available, then you may have to look at evicting because the house is not habitable and is too much of a liability.I would definitely exhaust all options to keep the tenants if they have been good tenants. 

Instead of holding up the closing, some of the proceeds from the sale will be held in Escrow until the seller fixes the needed repairs.

I am not sure how I should proceed.

The insurance company totalled it and only gave us $15k ( yes the policy was for only 15k the person who owner financed the place to us bought that policy and we never bother to check it).Now we clear the property and I listed it for 27k, was under contract three times but for different reasons it fell out and didn't sell.

Buy them on sale, used etc. and check them regularly to insure the tenants have not turned them off if they are paying for hydro.  

Some of the costs involved are licensing fees, continuing education, errors & omission insurance, general business liability insurance, increased auto insurance, realtor board membership dues, sentrilock fees, css fees, mls fees. 

@Jim G.In my experience, the shut off valve was required in order to get the homes insured.