The city wants to tear the property and surrounding properties down Zillow said it’s worth 38000The city offer me 13000.I could use some adviceHard to give advice with limited information, but as a general rule, the longer you wait and the further down the line their project is the more valuable your property will be to them.Zillow (and all automatic online) estimates are very unreliable, so don't base on that.

What happens if the water service line has to be replaced?

Please text me with the number on my signature line and can walk you through my configuration.   

But, just from your own commentary: $15k to own 32 new construction units is VERY out of line with market.  

Best bet would be a “partnership” with a monied individual looking for a high risk/high return passive investment with you providing the “active” part.  

That’s the best bet.

I'm betting he'd drive to that area.

Grandpa and Grandma take five acres on the back forty and punch in a well and sewer (when it was cheap to do so), run some water and sewer lines with the old backhoe. 

Now, three years later, my tenant reported cracks in every room—paint cracking and full-line cracks in the bathroom, living room, and bedroom (walls, ceiling).A drywall contractor looked at it and said it’s normal wear and tear, but I’m concerned since it’s in every room.

And what is your price point and are you looking for turn-key properties or something along the lines of a "fixer upper"?