Since it's in the city, we have water and sewer access.

You will also have ADA issues with all stairs only access.

@Rachel Seymour-NewtonIf you want to buy off-market deals network with wholesalers and agents in your market that source the deals you are looking for so you can get access to those opportunities.

Hello, we own and live in an 1150 SF single family on a 5200 sf lot with alley access in Encino.

Did you access funding?  

Also, sheriff's sales are no access so you are buying sight unseen.

Maybe one unit that has a better view or easier access to an amenity...etc. 

If you have access to a line of credit on your primary home, that could be a good option.

Paying interest is better than not being able to access your money unless you can comfortably take a 100k swing in your finances.

And you can tailor it to you, so 1) You certainly don't have to charge 100% while vacant (dependent on bldg. layout, thermostat access, etc.) and 2) You can tailor the Gas/Electric as you have brought up so maybe 50/50 all except 60 unit 1/40 unit 2 for electricity... etc.