We like the idea of the SD S401k because we would not have to set up an LLC, nor would we have to pay a custodian to do the frankly no-brainer work of receiving deposits and cutting checks for a new water heater.

Water heater near the end of its life?

1.Replace The Toilets… all the Toilets, everytime2.Don’t use the seal that comes with the toilet, They’re junk, and toilet water may drip into your dining room.

If not you will have to have capex expenses to cover floors 10 year life span, appliances and hot water heater 12 year life span, bath and kitchen remodel 20 year life span, hvac 20 year life span.

Things like cracked window, not strapped water heater, missing smoke/fire alarms that the lender wanted rectified. 

I think in your situation you could charge an extra fee for the use of the w/d to cover the water usage

You may want to run the numbers again if you rehab the place for $12-15k and take care of the water heater, furnace, etc in that process.

One water heater will need replaced.

Unit 1 - Painted throughout, installed new floors throughout the downstairs, replaced appliances, kitchen cabinets, the bathroom vanity, the majority of the light fixtures, and the old dirty light switches and outlets.Unit 2 - Replaced water heater and rangeOther - Repaired roof, added some foundation supports, and added curb appeal by painting the patios/doors, replacing porch lights, and putting new house numbers on top of the paint What was the outcome?

Unit 1 - Painted throughout, installed new floors throughout the downstairs, replaced appliances, kitchen cabinets, the bathroom vanity, the majority of the light fixtures, and the old dirty light switches and outlets.Unit 2 - Replaced water heater and rangeOther - Repaired roof, added some foundation supports, and added curb appeal by painting the patios/doors, replacing porch lights, and putting new house numbers on top of the paint What was the outcome?