No water bill, taxes would drop 75%, and no more mortgage.

The contractor came in and replaced it and upon closing whatever the bill was for the septic was taken from my money and given to the contractor and the rest went to the seller. 

I won't make any profit on it, but he's paying the bills and our hope is that he will buy it from me in 1-2 years or we'll keep it as a rental and he'll buy something else.

Consider paying down the high-interest debt strategically if it outweighs the potential returns from new investments.Additionally, understanding Real Estate Professional Status (REPS) and Short-Term Rental (STR) tax savings can significantly reduce your tax bill while building your portfolio, enhancing your overall financial strategy.

Typically in northern states the cost for natural gas is way cheaper than electricity so over the life of the system your utility bills most likely will be cheaper with gas heat.Ductless split systems use electricity to power in heating mode.

If your conservative you can put the profits in a risk free T-Bill paying better than 5% with no phone calls to unclog a toilet.If you decide not to sell, then let's tackle your question about PM.  

I wanted to get everyone that has done or has a ton of knowledge in the CA space for doing ADUs for the new bill that was passed AB1033 for ADUs.

You would do better in 30-day t-bills (right now ;-)The hopes an investor might have (if you purchased a property like this) are: 1) inflation to drive rents up, 2) inflation to drive property appreciation, and 3) mortgage rates to drop to refi at a lower rate in a few years.A lot depends on what someone thinks about the longer-term prospects of neighborhood they're investing in.

The truth is about the only credit I can give to any of them is that they got me interested in realestate and got me motivated to get involved in the game, the rest I learned by trial and error, people in the business and the biggerpockets of the 90s; creonline, who had people like you giving good advise to newbies for free.

Are bills like electricity and water something that's figured into weather or not a property is self sustaining?