I can only imagine that after being under water for 5 years, its tempting and rather exciting to exit, but who knows for sure.

From some research it seems like water sensors near water appliances, quarterly inspections, water proofing under sinks are some ways.

Aside from Gardena, Inglewood still has opportunities , Hawthorne is well positioned with many catylyst for change, and San Pedro's water front development will be a game changer for their mkt. 

I think views matter more when there’s a patio facing the water.

I put the rehab months as 150 months when I thought it was days, and as for water/sewer and house utilities and expenses are low.

We found the PM has been burning through our money (almost $2,000 for 2019 plumbing bills, due to hiring people on weekends for simple things), not calling us in a timely manner when we had an unrelated issue cause water damage!

You are paying 100% - Water - See if you can get the tenant to pay for it 

My other concern is water, if we let them use it I was thinking about a cap for the water bill but I have no idea what a good figure for that would be...The yard is very small and we inherited a lawn mower so I thought about just making that available for them.

Typically water won't be individually metered on these types of properties (too costly due to impact fees).  

Water, sewer3.