First, I'd reach out to the water company/utility and ask for information about usage history.

Last month, 2,714 single-family homes sold in the five Central Texas counties comprising the Austin-Round Rock MSA.

Appraisal happens and the appraiser comes back saying the value of the property is contingent to a $100 reinspection to verify all utilities work. 

Vacancies are not as tight as a few years ago, but they are good considering the number of new units that have come into service in the past five years.  

We still have plenty of credit available and we use it on our daily expenses (i.e. food, gas, utilities) in order to gain some of the rewards but it tends to keep our credit available low.

Next-to-nothing electric utilities should be a great selling point.

Personally, if it were me, I would invest in 15 minutes of a tenant/landlord attorney's time to make sure you're clear on the procedures that need to be undertaken.

So what we have is two people paying rent and utilities in a home without a lease, contract, or any proof of an agreement. 

Stepping into a purchase with current tenants can be a lot easier, if the numbers are good.You might look at a HELOC on your personal home, but not until you have really worked through the risks. it would be awful to lose your own home on your first investment purchase.It has only been five months since your home purchase- how is your emergency fund?

I form my LLCs using an online company - takes about 15 minutes and has worked just fine.