Most of your issues sound water related.

Your worry is if the pipes are in tact and if the water and sewage flows out.

I recently heard from my tenant about consistently high water bills—over $1,000 each month.

Even a typical water heat replacement would set you back signficantly.There's plenty to the puzzle that i am unaware of but with what you've outlined here i would consider passing on the property.you know you need managementyou know you need to remove at least one tenantyou know cashflow is meager after considering management.i personally wouldn't recommend a client take on the risk for such a paltry pay out out of state.Even when considering long term appreciation the average amount of headache one assumes with a property will bog you down before the long term play pays off.

Hi William, we're right across the water in Brooklyn! 

Thermostat was off the wall, laundry room filled up to 3ft with dirty clothes trash everywhere, bed frames dissasembled and no water.

I went there to have the water turned back on and started getting caught up in what the preferred order of operations should be.

However I would probably bill it back to the tenant monthly if it was based on usage like water.

We had redone a brand new kitchen and included a new water line for a refrigerator cold water dispensing.

In the next few months, I'm looking to get a standard CA NAA lease with RUBS included for billing the water and sewer, as well as requiring tenants to have their own renters insurance, as that is not something they are currently required.