But in either case, I agree that using percentages of rent or purchase price are silly since that varies greatly on a location but the water heater/roof/etc costs are nearly the same. 

so in essence a flooring line then when they are sold he signs them over in exchange for his principal and his return.. usually 15 to 18% interest on those.. got to choose the used car dealer wisely of course.. they have been known to fudge titles and your collateral has driven off without you getting paid.I also have a client.. they happen to own a few Toyota stores in Oregon but one of their business and I think it could be one of the largest on the west coast is they buy sub prime auto debt... you know the kind were they put the chip in the car and also a little do hicky that flash's when the payment is due  and then when they are 15 days late or some amount of time the car is disabled.. so they can use the chip to find it and its disabled and they can just go and repo it.when I was in Jackson MS I asked a used car dealer there that I met at my watering hole.. how the heck do you sell cars for a 100 down 100 a month .. he said  SON  my clients are born live and die all within in about a 10 mile square area here and the key is getting their mom's name and number.. we just drive around till we find it or call mom and get the whereabouts..

Looking at it, tenants pay only electric so you'd be paying water,sewer, garbage, landscape and maintenance.

as far as how much electric , its all relative to how much water being used .  

I’m going TO OFFER $125K and do $15K UPGRADES.Mortgage - $1310/mth(30 YRS, $140K, $3600/YR, $1500/YR, 6.5%)Taxes - $3600/yrInsurance - $1500/yrUtilities - $425/mth (owner pays heat and water)(verfied by Weenergy and Water works)Property Management - $375/mthRepairs and Maintenance - $650/mthCap Ex - $300/mthTHEREFORE,INCOMING -$2525MORTGAFE - $1310PM - $375/MTHUTLITIES - $425/MTHRM - $650CAP EX - $300/MTHBalance is NEGATIVE -$535 PER MONTH.Looking for POSITIVE CASHFLOW OF AT LEAST $500/MTH.What would you offer?

Also, the supended ceiling in the basement clearly is wrecked from water damage, although during inspection no source could be found and above the ceiling everything looks good. 

I touched almost every system on my side of the property.

Two of the homes are on one lot, and the water is NOT metered seperately.

Two of the homes are on one lot, and the water is NOT metered seperately.

Obviously it is a benefit to pay for water because perhaps the tenants could water the landscape.