@Steve Morris: I will definitely narrow down my end goal to a specific type of property and have hard cash and/or financing plans squared away before first contact. 

We've done 1099s, etc. to make sure we're squared away for taxes.

Ratio Utility Billback Systems are a great way to get tenants to pay for their water, but it doesn't need to be overly complicate with rigid measuring systems.You can create a formula yourself based on square footage, number of tenants, etc... that each unit contains and then right it into the lease that they'll be responsible for a portion of the monthly water bill as calculated through that formula.The key, and it's an important one, is that you cannot profit from billing them for utilities.That means you should take the monthly water bill, and only charge back, say 60-80%.

However, I live in Burien, WA, a town just south of Seattle.  

You'd have to check the Washington landlord tenant law and ask around to see what common practice is.  

Compare to other 4 bedroom rentals  with similar square footage in the area.  

I am assuming this is below Washington for that price.

The unit is brand new and is too big for the 1200 square foot townhouse, so it heats up the space quickly and then shuts off.  

Based a price per square foot of recent comps in the same neighborhood, the ARV should be somewhere around $350,000 with a rental potential of $1400-$1500/mo.

I'd also add Edgewater, Lincoln Square, Logan Square, and Rogers Park to the neighborhoods she listed.