Do not make a decision based on fear of missing out.Condos and townhomes are generally bad investments because you do not control a large potion of the costs.  

I figured rather than being upset at my cost I would transfer the decision making process entirely to my tenants.

If you work with a good wholesaler or good agent, they should be able to help you make quick decisions.  

The Casino money plus insightful decisions by the City Council are leading this area as it resurges.

Lastly, simply raising the rent to cover the water bill seems like the easiest, however, should their portion of the bill exceed the amount I increase their rent by, then it'd be out of my pocket.I'm kind of at a crossroads here with making a decision and want to hear anyone's experience regarding the topic.

Making only $4000 a month for a capital outlay of $900,000+ is poor investment and so you would have to take a large discount in order for most note investors to get involved especially if these are second liens.  

I live on a septic and I get being worried about this, but I would do more research before you make that decision! 

Sellers will understand that the most practical structure is to include the BAC in the sale price, and the ones that don’t will just have to deal with the consequences of their decision which will be a little more confusion in reviewing offers and potentially limiting the number of buyers able to offer on their property if they are rigid and don’t want to pay a buyers agent at all.

My parents always use to lament what a poor choice of majors it was.   

The more details you can give me the more I can help, but consider a couple of these decisions.