I'm planning to speak with my CPA and put the other unit for sale (realtor has said it could sell for 90k due to a water view) and get into another quad in 2014.

For example most water and mineral leases get recorded and thus must be notarized.

The tenants pay their own water and sewer?

I never worried about the insurance that much since we did not have that much cash in it.. if we lost 10 to 30 k in a fire ( which never happened over a decade and over 100 of these so what.)your last sentence is where I have seen many many folks come to me to bail them out.. in very hot water.. some of them got turned into the AG.. not pretty.I would not do this thinking this is how you build long term holds. to me this is get into title value add sell make your dough pay the sellers mortgage off so they can go borrow again.. 

@Sherrie P.Vacation rentals can be quite lucrative whether they are on the water or not.One caution about waterfront they are re-drawing the flood plains zones around here and are quite liberal.

I keep seeing articles all over the internet discussing upcoming changes and my banker tells me that "the rules are always changing" but I am curious to find a location or two that I can find what changes are coming without having to go through all of the legislation line by line.I guess I am looking for an expert site to help interpret upcoming legislation but not water it down for the masses like CNN, Fox, or CNBC.Thanks!

I was looking at this more from a liability perspective and what might be the min requirements to stay out of hot water.

I did not include:( Hopefully, I can get through the first year with minimal costs in that area because all appliances, carpet, hot water heater etc are brand new.

700 sqft 2 bed 1 bath, full unfinished basement.Needs new water heater, furnace, central out unit, new carpet.Everything else seems to be in great condition.Under 4k in updates to get it rent ready.Monthly expenses will be$30 association fee$60 property taxes (700 per year)$insurance..waiting on a quote from my broker.the comps in the area rent for around $650-700seems like a no brainer to me.

Also, the inspection went really well with very minimal things to fix.purchase price $191,000 4 plex.25% down at 4.75% interest rate. monthly mortgage $1,150Total rent each month $2,350 with a on site laundry that brings in around $80 a monthunit 1 $550, unit 2 $575, unit 3 $600, unit 4 $625my water will average around $180 a monthcash flow is roughly going to be $1000 a month not including vacancy rate and repairsall four units are rented and the tenants want to stay. 3 out of the 4 tenants are all Air Force since it is close to a local base.Do I want to have all the tenants to sign a new lease?