The same is true for smaller multi-family (5+ units) and even larger properties.Depending upon regulation in your area and the manner in which the property has been plumbed, you have the option of sub-metering water and billing each tenant for their actual consumption.  

We do not rent units with utilities included {students are not always careful with their energy consumption habits}, but we do provide a single payee option where the student tenants prepay their utilities through us each month along with their rent.  

Obviously different sized units and units with more or less tenants will have different consumption amounts.Hope that helps!

Tax consumption, not income.

Water is included for my duplexes, but I have a clause if the consumption goes over some dollar amount per month or quarter, it will be billed to the tenant.

They are responsible for consumption and thus should pay directly for that.  

If this is for your internal consumption, then go with what most folks are saying. 

This will give you the option of several exit strategies including making a profit on rental income if all else fails.Now back to your original question about what I would do if I were in your shoes, well ,It has a lot to do with the Florida Keys, lots of alcohol and pretty women.

Joe has a crummy $50/month health insurance plan, but he's an alcoholic and spends $250/month on vodka.

Most people here are actually talking about how you deploy funds -- either for investment or consumption -- that the debt allows you to do.