But it's walking distance to the beach, in a great location, and had tremendous potential as a STR (which was the primary goal) and huge upside for appreciation.The only things I would rule out, and would advise my clients to consider walking away:  Major basement water problems, significant structural issues, and evidence that prior work was shoddy, or that work was done to cover up a bigger problem. 

Plumbing drains, water, and electrical were all VERY easy to run. 

Cities that require each:Soils reports ($6-7K for report & required work): Carlsbad, Chula Vista, Encinitas, La Mesa, National City, San Marcos, VistaStorm water management ($5-7K): Del Mar, Encinitas, VistaBuilding Verification Survey ($3-8K): Del Mar, Oceanside, San MarcosUtility upgrades are also a very important consideration, and City of SD in particular is enforcing more requirements than they have in the past, e.g. water fixture counts and requiring ROW work to upgrade.

The tenant received their water bill and found it was $500 when it's typically only around $30.

In my specific case, the tenants pay electricity & gas, but the previous owners were paying for water.

PLUMBING expansion tanks for hot water heaters, copper scabbed into galvanized pipe and proper venting HVAC - sealed duct work and properly sized for sf.

We deal with a lot of shared water and electric.

I get them to cover closing costs, add in amenities like appliances, window covering, water softeners,  all the things we would have to pay for, they pay for, $ not out of our pocket is $ "discounted".

Turn water off2.

Anyone else hear of passed legislation mandating the property managers in addition to property owners are now responsible financially for any repairs not done on properties, taxes not paid and rental certs not submitted/paid for, lead based paint fees/apps and required work, HVAC certs every year and proof utilities (water/sewer) as paid, and general compliance matters?