Curtis Waters may be of help also.

If you can't live with them (or are concerned that tenants will keep you in hot water all the time) then don't buy. 

For example, things like a source of heat (furnace) in the wintertime, a working water heater, working plumbing/electrical systems, etc.

Salt water, storm threats, and a snow-bird lifestyle are the driving force behind the need.

@Phelim Lennon I financed the property 20% down conventional by spending money getting the heat/water to run to meet guidelines before actually purchasing the property.

The only thing I can think of is that I discovered an owed balance on the water bill from the owner pre-foreclosure.

Otherwise you can get a loan based on what you spent Yes, reserves is 3 months of PITI paymentsI have a 4 unit and duplex on the same lot and that is my average water bill.  

It is no different than any other utility - are you liable if your tenants misuse the water or electricity (i.e. grow op, unlicensed home brewer, etc)?  

I do believe you need to put your feet in the water it you actually want to learn how to swim, so most likely, in a few years, i will look at the investments I have made in the last few years and say to myself "today I would have done it better", nevertheless, I am happy i have done them. 

Best balance and closest proximity of outdoors/beach and water activities/food/nightlife/weather I've seen.