Again, expand your mind and break your internal idea limitations!

I guess I’m loss.

If you do have gains, you may be able to offset other properties losses to reduce the tax burden.

On the positive, your losses are light. 

Lending capacity should only matter to those with large borrowing needs and require large legal lending limits but that wouldn't apply to hard money lenders anyway.

With a Conventional Loan you can buy a SFH, Duplex, Triplex or Quadplex with as little as 5% Down if it is your primary residence as long as you have the intention of occupying one of the units for 1 year after closing escrow.This is the strategy I have personally implemented and have assisted many of my investor clients in doing the same. 20% Down is also beneficial as it keeps your payment low but it does limit your ability of buying more real estate faster.i would be more than happy to discuss the different strategies with you over the phone or in person.

This means that the bulk of the expenses are not going up annually.In addition, if OO you get to write off the property tax and interest to the SALT limit ($10K). 

Then think I could have 2 sub meters put in (believe the limit is 1 per main water meter).

We sent messages to all residents and 3 didn't answer, so it seems like that is the place to start, but does anyone have any ideas on how to figure this out given the limitations?

I would protect myself and cut my losses so I was not looking over my shoulder or getting high blood pressure every time I heard a knock on the door (hoping it is not the FBI showing up to ask you some questions).