The main house has a pool, so it adds complexity because of the increased water bill.I have though of two options, one is to make the main house foot the bill, but that will surely cause me issues down the line when they start questioning the use of water and electricity of the other tenants.The second option I thought of is to include all utilities also for the main house, so me footing the entire bill.

You can lead a horse to water, but you can't make it drink.

And possibly having to modify the work to actual code and standards. 

I'm not making that up, that's the qualification standard that's applied.

I'm basically at water level on this, and I don't know that other investors could make this cashflow any more than I could without me selling at a huge loss. 

Do you look for an acre with city water and electricity and build on that or do you put in your own?  

Since you posted this under "house hacking", then you might be looking for a standard type of financing.

Keep in mind, if there is enough depreciation (IRA can't take the bonus depreciation, need to use standard depreciation schedule), that depreciation might negate any positive income.

I was thinking I'd buy an acre of land that has city electricy and water available, and pay that off so that it can be used for collateral one house at a time.  

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