@Michael Lauther - I'm not the most veteran of investors, and I don't know what the cost is to replace it all and do it well vs. just repairing, but I do know one thing from simply personal experience...you don't want to mess with water, as a shortcut could end up costing you a TON more money down the road if the repair doesn't hold up.

Then one day they realize that the roof needs to be replaced ($6000), the HVAC needs to be replaced ($5000), the hot water heater needs to be replaced ($800), the siding needs repairs ($1000), etc.  

However, if your water/sewer/garbage is not individually metered, an associated cost can be increased based on increased unit usage.

Like disappearing water heaters.

What if the gap they want to caulk is because of water damage or shifting?  

The water is actually not separated from us so we know the water bill - ~$60 for both town homes.Therefore, monthly cash-flow without unexpected expenses would be $370-$920.

And you've been paying her water bill all this time?

So this might be strange and it might even be a good thing, I'm not sure, so I need some help deciphering the situation.In my duplex in Dallas I have tenants that has been with me for almost 2 years now, they have been awesome, pay on time for the most part and keep the place very very clean and tidy.However about 6 months ago they started to complain about little issues every time I saw them.Part of the weather stripping needs to be replace, the threshold needs to be repainted, need a timer to water the foundation.

Im only paying water/trash.

So, fast forward a few days from hearing our offer was "accepted" and my realtor and handyman go to the property (had rained a few days prior) and see water that had leaked into the master bedroom and the ceiling was wet and the carpet as well.Then, the listing agent calls our agent and says she was mistaken that it is not actually accepted, but just the trustee has accepted, still waiting on the bank.