There are other concerns too though besides "wouldn't it be cool to do this, avoid some taxes, and use this pot of money I inherited" such as valuation and liquidity.

Sewer and water lines are THE HARDEST problems to identify before during or after purchasing.  

Gross Scheduled Income: $12600Expenses (Maintenance, Management, Taxes, Insurance, Utilities (water & trash paid by owner), Landscaping, Common area electricity, CapEx, Vacancy, Internet for complex, security, etc.): $6400Debt Service (5.5%, 20yrs, 80% of cost): $3700Cashflow: $2500Annual COC: 17%I want to make sure I'm considering everything but also don't want to get stuck in analysis paralysis.

We have three water bills from the Water Department, Malden, MA.

Currently we are renting for $1100 plus electric and water, aprox $200.

.) = 529 x3 months (March, April, May)$3456: Interest only HML payments ($92,160 @ 15% / 12 = 1152) X 3 months$ 1137 Dumpster fees x 1 month (10 yard dumpster @ $379 flat rate per 10 days)$ 3500 staging fees x2 months$20000 Rehab (extremely conservative estimate, actual cost pending)$5000 Possible Repairs (extremely conservative estimate, actual cost pending inspector report)$300 City Water, trash, sewer (@100/mo)$900 Electric ($300/mo)$84 HOA (@$28/mo)$300 Lawn mowing ($100/mo)Selling Closing Costs and expenses = $19,380$ 7140 (3.5% of ARV)$ 12,240 (6% agent fee)Total Profit = 204,000 – 169,217 = $34,783 (before taxes)

Your agent can get a Property Condition Report off of HUDs website that has the condition of the water supply, HVAC, roof, electric, etc.

Like foundation work, mold damage, water damage and things like that.

But cable is like a water pipe that is shared among everyone on the line.  

I always like to do a little incremental updating and stay on top of things on a new purchase while the tenants in there, that way there's less to do when they move out. a new vanity and faucet is just a couple of hours work, and inexpensive and will do wonders to update the look.I like to buy slightly higher end faucets while on sale to have in stock for just such a situation. also if it's a older toilet that uses 5 gallons per flush I always replace them with a new toilet that I also buy on sale usually $100.00 or so but saves a ton on water bills.