It's still occupied by the original owners, so hopefully they are outside and not next to the water heater.But yes, certainly a mess.

But sometimes I like to try and fix certain things myself, mostly for sh*ts and giggles ;) I remember being real proud of myself for switching out the toilet tank thingy that controls the water flow :) of course it took me 4x as long as a professional plumber, and I ended up paying myself a whopping $5/hour, but it we fun!

White Water-Based Interior Primer, Sealer and Stain-BlockerYou will need to do the walls, ceiling, and under carpet.If you have any other questions about it just reach out. 

.): $1,500Paint (most rooms need paint): $1,000Roof Shingles: (may or may not need to do; roof missing a few shingles near gutter): $300Dryer Duct (missing a piece that connects from laundry room to outside, quick fix): $100Hot Water Heaters (electric) x 2: $2,000 (which is probably way high, but trying to be conservative).TOTAL ESTIMATED REHAB BUDGET (which is probably sky-high): $9,400ESTIMATED CLOSING COSTS: $5,000 all-inPROJECTED CASH-ON-CASH RETURNS: 14.91%=====================SECTION 8 PROGRAMI really need to educate myself on the Section 8 program. 

@Michael Lauther - I'm not the most veteran of investors, and I don't know what the cost is to replace it all and do it well vs. just repairing, but I do know one thing from simply personal experience...you don't want to mess with water, as a shortcut could end up costing you a TON more money down the road if the repair doesn't hold up.

Then one day they realize that the roof needs to be replaced ($6000), the HVAC needs to be replaced ($5000), the hot water heater needs to be replaced ($800), the siding needs repairs ($1000), etc.  

However, if your water/sewer/garbage is not individually metered, an associated cost can be increased based on increased unit usage.

Like disappearing water heaters.

What if the gap they want to caulk is because of water damage or shifting?  

The water is actually not separated from us so we know the water bill - ~$60 for both town homes.Therefore, monthly cash-flow without unexpected expenses would be $370-$920.