For instance, before getting involved I was thinking of buying a fixer upper, fixing the house and doing all the work myself and get paid.

I am assuming this is the language used for a rental property, so 3% applies for this instance, but I thought the seller pays for the commission. 

@Ravindra GandheListen to your PM in this instance and replace or install a new heating system

For instance, the market I am based out of, Nashville, has seen relatively low fluctuations in price when compared to other markets.

So for instance if I can get 3% a year "risk free" by buying 10 year treasuries, I would be a little nuts to buy for cash an apartment building in Seattle for that same return because there is all sorts of risk in an apartment building.2) Supply and Demand for that Asset class.

You and your friend can research past similar instances in your state and see how those played out in court.

For instance, is there enough STR or MTR demand in your area that you might be able to use it for a down payment there instead?

For instance, instead of buying one a year and house hacking each one for the next three years maybe add another property or two every year along with the house-hacks?

I've seen them come in for over $1,000--if it makes you struggle, ask for a payment plan.Or you cold try to push it down on the renters, but the defect seems to me to be on your pipe, and beyond the control of the renters.If it were leaking inside the house and they were just (sitting around for a month watching the Price is Right on TV and drinking beer) ignoring it, I'd (try to) pass it on to them.I say try to because they may not be able to pay it--(for instance, 60% of the renters in California have income way below the Federal Poverty Guidelines). 

So, paying each instance for the work directly just makes more sense to me.