You have hit the JACKPOT of resources for real estate investors.

You have hit the JACKPOT of resources for real estate investors.

You have hit the JACKPOT of resources for real estate investors.

Under (current) Section 1031, tax deferral is available for the exchange of real property held for productive use in a trade or business or for investment.Also, real property held primarily for sale is specifically excluded.No direct specification of the holding period requirement period is made in the tax code.In general, the courts have been more liberal than the IRS in defining what qualifies.Technically, properties can be segregated and categorized with a single taxpayer holding some assets primarily for sale and others primarily for investment.Without foresight and planning, a serial flipper is not well-positioned to challenge the IRS on this matter.

The downside is that it is a 100% liberal area and measures are being enacted to "protect" renters.

You have a very liberal refund policy, refunding 5 days out, and it's up to the guest to buy travel insurance if they want a refund for weather. 

You have hit the JACKPOT of resources for real estate investors.

Wholesaling without money is possible, but so is winning the jackpot every single day.

You have hit the JACKPOT of resources for real estate investors.

I think you have the right idea in having them pay for their water, perhaps it was also the case of them being overly cautious about water usage when they co-paid, and now they have become overly liberal in their water usage since you assumed the cost.