Pretty cool.You probably won't find this type of home in Florida or anywhere where the water table is high.

But during the buyer’s due diligence, several unexpected issues surfaced, each cutting deeper into the profit I had worked years to earn.The first issue was with the water lines.

You also mentioned an unpaid water bill, so be sure to deduct any outstanding balance from that bill as well. 

If the water bill is $100 a month, increase the price by 20% (or whatever you decide is fair) to compensate you for the time required to split and bill and to cover additional use when tenants squander the utility.

The property has 2 electric meters and one water meter.

If you think there a leak have all tenants not use any water and find the water meter outside.

You could easily be $100k in for water/gas/power/sewer if you’re talking 4+ lots. 

Sounds like you stopped water which is most important.

We bought our first rental in dec 2023, this was to test the waters of being a landlord in the US.

That actually is a benefit, as no one is expected to water the yard.