I'll definitely want to be sure that I've got no water issues in the basement.Should I expect to see this happen in more places around the perimeter as it's already happened once?

@ Robin SecordHi RobinI read in the " Wall Street Journal" this week where many customers (in Detroit)  had their water turned off for non payment of their bills.

It's heated by a single hot water boiler, which shares a gas line with one of the rental units and a commercial dryer in the basement. 

-Sewer and Water/Trash/Heat/Electric (for two units)40+30+70+70 = 210 x 2 = 420 x 12 = $5040-HOAHonestly no idea, found an email to contact but i'd rather not bother them now, I'll guess $100 per month. 

Here are the details.Asking Price $275,0008 Unitsbuilt in 1987All are 2 bed/1bathRent is $500/month per unitOwner pays water/sewer/trashFinancials:They were not provided in the listing, so I am estimating on some costs.Down payment $68,750Closings Costs $10,000 (estimate)Mortgage Estimate $1361/month (estimated 5 year balloon, 20 year amortization, 5% interest, 25% down payment)Annual Gross Rental Income $48,000 ($500/month * 8 units)Vacancy Loss $4800 (10% estimate)Adjusted Gross Income $43,200Property Taxes $3018 (2013 actual amount)Insurance $1500 (estimate)Maintenance $4320 (10% Adjusted Gross Income)Water/Utilities $5760 (estimate $60/month per unit)Property Management $4320 (10% Adjusted Gross Income)Net Operating Income $24,282Operating Expenses $18,918Annual Income $12,468Cash on Cash Return 15.83%Am I underestimating key costs here?

I know we can get 850.00 and maybe 900.00 rent on this one.1100 s.f. 3/1.5/2 brick house roof 10yr old, heat. air and water heater new 3yrs  new insulated windows 3yrsStove micro  frig clothes washer and dryer all stay. nice fenced yard. 

While the HOA fees do diminish cash flow and can adjust year to year, it seems to me that by purchasing a condo within an existing HOA could actually save you money (no large expenses, i.e. water heater, roof, etc.)

The water from the sewer softened the foundation and the wall fell out and the house was condemned and had to be torn down.

It's a fantastic home with updated AC, furnace, water heater, roof, etc. but it's extremely dated.

I like public water and sewer, but I will look at private systems.