Fast forward to the present, and unfortunately due to hard times, I've since lost almost all my life savings and am long-term unemployed.

And there's no circumstance in which they can go on Schedule E. i.e., you just take the hit.That makes sense/seems fair.

But only in the right circumstance. 

Unfortunately It's been a constant stressor due to the anti-landlord culture and laws in the city.

It sounds like in California, no you cannot get records of people who have had their water turned off unless you can convince "..the utility... that the public interest in disclosure (of these records) clearly outweighs the public interest in nondisclosure.”The paragraphs below are from here https://firstamendmentcoalitio...Unfortunately, there is a specific exemption under the California Public Records Act that exempts from disclosure “the name, credit history, utility usage data, home address, or telephone number of utility customers to local agencies,” though it goes on to state that such information may be made released “[u]pon determination by the local agency that the public interest in disclosure of the information clearly outweighs the public interest in nondisclosure.”

To have someone willing to give you that kind of money on nothing but "trust" is such an incredible opportunity you owe them everything and they owe you nothing, good deal or bad deal, not that I think this situation would happen again.The unfortunate fact is that you had personal emotion tied with the money.

Here are some insights and potential options to consider:Policy Limitations: It's not uncommon for mortgage lenders to have policies that only allow transfers to an LLC under specific circumstances, such as if the property is your primary residence.

Unfortunately, upon doing some initial research (including on biggerpockets and reading Brandon's book on real estate investing), its not always feasible to invest where we reside - do you alternatives in mind?

Unfortunately, plumbers are notorious for being very ignorant and notorious for ripping off their customers.

Unfortunately, this is near impossible without selling the property, rates are up and are likely staying high.