You might need a 2nd well if you're not on city water. 

He would show up, realize he didn't like the view of the water tower half a block away and back out.- Getting under contract and then reducing the price because of findings is common, but major reductions are likely to tick off the seller unless you have strong justification.

That certificate would show open taxes, water, housing violations, citations, condemnations, receiverships, construction liens and other municipal liens.

I dont have any experience in this market but have looked into it a little bit, I know that you can get the houses pretty cheap there but my concern was with the long term appreciation - I dont believe it is a highly desirable place to live and so there wont be much appreciation -however that is just my opinion and I really didnt look into it much,  I think it would be a cool place to live as I go to Monterrey all the time, but its hard to say. 

If the security deposit is not going to cover the the water bill or damages, try to scare him into covering the balance by hinting at sending him to collections and it will appear on any future credit pulls he may have done.

I'm skeptical but I'm willing to test the water to something small first.

I estimate high of what the bill would be and put it on their lease, I have not had any issues this way and if the water bill goes up, I will increase on the next lease. 

I like sunken living rooms they look very cool! 

I have yet to see code violations, water shut offs, and fire damaged properties. 

It was really cool place on a lake but they wanted like $500k for it.