Theft or exploitation of anything over $500.00 is a felony and is punishable with 4-12 in prison.  

At the same moment I was looking at the unlawful detainer record for our county and see 7 evictions in 10 years.

I might start by seeing if the current set-up is harmful or unlawful.

it is unclear to me if you have possession of the house and the tenants have leftIf the tenants have not left, then go thru the unlawful detainer process to obtain possession (other things can also be done)if you have possession, there's no need for a warrant since you are allowing entry

Obviously you do not want to go there.Inconsiderate indivulaes intent on violating rules must be punished (fined) otherwise they have no reason to conform.

Hi Bruce,Risk / Reward (or punishment) is what comes to my mind about this.If you miss the numbers and if you can't carry it to the numbers you (paid for) you may risk foreclosure.Other than that, a super deep discount on a per door price (providing you can carry the place at a possible loss until you can fix it) might seem attractive. 

Any suggestions or ideas would be very much appreciated.I also sent a 10 day unlawful detainer certified mail today.

Can you imagine being punished as a contractor for getting jobs done too efficiently?

And how do you plan to follow up/punish the offending tenant?

You could get charged with an unlawful, "self help eviction" if you turn the water off.