We have a housing shortage & Lakeland hospital is in the process of building a multi-unit 28 units I think.

There are a ton of members on here from SD, so there should be no shortage of information.

Because of the housing shortage there are no vacancies and my rents go up every year. 

There is a shortage of good management companies here across Atlanta and Georgia and when you find someone competent, it gets expensive.Your best bet IMO, if you don't want to handle the management is find someone experienced and competent who will take on a few properties as a sideline to their existing income.Good luck with your search!

They get leads from a ton of sources and are never in shortage of properties.

Whether the back taxes total $4, 5 or 6k is of no concern to you if your agreement is that you are buying the property free of all liens.If, on the other hand, you are purchasing the property free of all existing liens and paying $10k with a purchase money note for $10k, this would imply that the shortage would require the seller to bring money to escrow to pay the back taxes, and then walk away with a note from you for their trouble.

Rental rates in Miami go up really high very often because right now there is a shortage in hotel rooms for the amount of visitors they are receiving per year.

As a Realtor I make money selling property so it's frustrating when there's a huge shortage of a certain asset class!

However I am wondering about if water shortages could be problematic and if there are shortages cause my houses value to drop substantially.

You will quickly find there is shortage of trade and this has driven the prices up.