@Damien Cox If you are finding a lot of seller leads that are under water, you may want to find a short sale specialist in your area and establish a relationship.

I keep hearing of homes that cannot be financed through traditional means due to condition deficiencies like broken windows, non-functioning kitchen, no running water, etc.

Look at the ceiling and see if there are any water spots or cracking5.  

I called the field service company that is maintaining the property to get access for inspection and found out that the instant hot water heater, according to their own reports, is likely bad.  

So far, my expenses include the following:- Property Taxes: 1.25% of purchase price- Rental Insurance: 0.5% of purchase price- Management Fees: 10% of gross rent- Vacancy Rate: 10% of gross rent- Repairs & Capex: 10% of gross rent- Utilities: (garbage, sewer, water): 10% of gross rent- Mortgage: 30 year with 20% down paymentWith these assumption, I get negative cash flow in my area.  

all these old houses have the same issue. the wall is 2" deeper than the tub and you cant put tiles there to prevent drywall damage.you fix the drywall and it comes back. i am guessing the tub has a slight pitch and that's why the splashing water is rolling towards the outuside of the tub.see the picture.the corner guard is not helping, as you can seeanywhere to fix it?

I escrow taxes, insurance, and water estimates in the buyer's monthly payment.

Ive been having some difficulty comping out the piece of land as this particular property has all utilities already set for the property ( water, sewer(not septic) and electric) and most of the land properties do not have this, does anyone know how much it generally costs to get these items set up?

I recently read a report that might take place sooner than expected due to Southern Water Demands.  

Otherwise your underwater and dead in the water.