Also before buying a property - capex, utilities, property management and all other related expenses should be calculated before purchasing an investment property - especially in california.

We find wholesalers through Craigslist, Bigger Pockets, and meetups (I suggest utilizing meetup.com).

Rehab budget 20-25k materials I would do 80-100% of the work whatever I can't do 100% right I sub out that's how I roll as a solo contractor.

Unless the seller was intentionally hiding a material defect that he was aware of at the time I don't think you'll have much recourse as you likely had an opportunity to perform due diligence inspections prior to the sale.

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. 

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