I am surprised they are running out of hot water fast, the smaller tanks should heat the water faster than the larger 50 gallon tanks, maybe look into small tank heaters with more heating coils to heat the water even faster. take a look at this one, available from HD too https://www.rheem.com/product/marathon-30-gallon-e...that one may deliver enough hot water for your tenants.

You will always have a mortgage payment eventually, pay interest, insurance, water/sewer, save for your reserves such as vacancies, cap ex, and repairs, and of course, can't forget property management if you are not planning to manage them yourself.

A couple things to consider:The infrastructure was designed to support a specific development (number of parcels, certain square footage and/or water consumption). 

Kids are unbelievably disorganized and trying to get them to do everything they need to do to have cable, water, electricity and pay YOU on time is asking a lot!

I'm now looking to partner with someone who will bring their net worth to the table and sign on the loan with me.

me personally I would never buy a park on private sewer and water.. again personally I would not do this. too much risk.

I struggle with whether I should take some money off the table and sell off some properties, reinvest in other areas that cash flow with some more room to grow on the apprecIation side, or just play the long game and ride it out.

You have many options.I don't know what rental prices are in Houston, but I have very many friends and previous buyers who have paid $1,200 a month for 800sqft-900sqft units (with water being the only utility paid for).I recommend West Gate area.

I was also confused when I saw all the "Auction.com" banners and tables everywhere. 

And its not really the snow that causes problems its the water from the snow melting and ice from that snow melt then re-freezing that is the biggest issue.