If you are running into such high number due yo wanted to have self contained units, maybe you should look into billing back your tenants for utilities. 

You don’t need the well and perc test if you go that route.You still need the soil test to check for load bearing quality.The water/sewer/gas/power across the street is great, but don’t underestimate the tie in fees for these utilities.

I do plan to budget another $5000 per year for boat maintenance (haul outs etc.) so total yearly expenses would be roughly $9000 plus utilities.

I'll give my thoughtsThey couldn't really afford it because a through background check was not doneJob LossJob relocationEviction - they stopped paying because ...They need a bidder place due to new baby or family member that comes to live with themThey get put in jailThey need a cheaper placeThey want a shorter commute to workDivorceDeath (in family or one of tenants)You raised the rent too muchPerceived or actual problem with the houseHigh Utilities at your house

Then the difficult one had utilities shut off in freezing weather and repairs had to be made before closing. 

You can always google and get something to start with and customize.

@Colby MulryMany people on this forum utilize umbrella insurance policies or LLC's for asset protection. 

With scenario 2 you can do a cash out refi on your current units and take that money to acquire more units...ideally utilizing the BRRRR strategy so you can keep growing faster and faster.

I'm sure the owners of Seamus, Felix's, Heavy Riff, and the like won't be complaining about 100 upper-middle class customers plopping down across the street.

So you either pay for 100% of utilities or pay for individual metering/submetering (not cheap).