It would be best if he calls the city and asks them to turn it in (although it is already on) in order to establish service for 2 reasons: (1) He's going to need to have the water on for the when the property gets inspected (banks won't loan unless everything is proven to be working) and (2) Right now the city could charge him with theft of water by turning the water back on himself (well, really the contractor did it but the city does not care). 

Just figured I'd see if anyone here new of an off market property. 

If he does not respond in kind tell him you are there as a care taker and he is violating the fair housing act. 

You'll need to check with your municipalitySome additional food for thought:Lot splits in my area take a lot of time, patience and moneyYou can finance the construction of an owner-occupied 2-4 units with an FHA loan for as little as 3.5% down but the requirements are kind of onerous. 

As you get started in the business, you'll become an infinitely better investor by learning from the experience of an experienced operator.

The common areas taken care of by the HOA were all the exterior parts of the units, and the pool.

The neighborhood has all the makings of an excellent neighborhood for investing, but does something like this make investing EXTRA risky.

I understand the roof and A/C are fairly new.  

It wouldn't be any different if these were houses that are not part of an HOA.And it's really simple fix for them. 

I do not know if it will add value, it may if it is uncommon for houses in the area to be insulated. and for $250, well worth doing, it may even help prevent any pipes from freezing in the future. as far as the electric, i do not find that price too bad, the basement will be easy for them to take care of, the 1st floor, they will have to open up the switch and outlets, tie the new wire to the knob and tube and pull the new wire up using that knob and tube wire and re install the switches and outlets, there is some labor involved and is easier with 2 workers. the lights are going to be the hardest for them to do and they may have to open some walls, i would check with the electrician on that and see if you are going to have the added cost of repair and re painting. a lot of times insurance companies will not cover you if there is knob and tube in the house and it was never disclosed to them, so it would be worth it to you for the insurance protection to have it done. over all though, it seems like a good price.