Usually if the tenant doesn't pay utilities they can't get a new account in the same area and it goes on their credit report preventing them from getting service elsewhere. 

During an inspection by the city, it was noted that the system lacks a backflow prevention device, which is not up to city code.3.

I realize now I worried entirely too much about the what if's on this deal and being more prepared would have helped to prevent this.Structurally if I were to do this again, I'd of created a trust instead of holding in my company name and changed the email and mailing address for notifications.

Root cause was a single tankless system that wasn't sized right to suply the house; maybe there are no tankless for that size ... 

Or, if he really wants the property and is looking for ways he can afford it, he could again sit down and write out questions he doesn’t have the answers to that are preventing any action at all:1) what’s the property worth now as is?

If you're paying $700 a month, you get pissed and do everything u can to prevent getting dings.So the real value of section 8 vs not section 8 is the tenant and wear on your property.

For rentals, although the risk of getting FC'd is low, you should always have an exit strategy to prevent a loss.

This will prevent me from getting tied up in any of their affairs.

From my experience it is better to do any preventative work on the units before tenants move in to avoid hassle down the road. 

For a genuine hoarder, 6 months would not be enough anyway, heck, 12 months would not be long enough since they have mental blocks preventing them from throwing things away.