The property is rented by DCFS ( department of child and family services) a government tenant and are occupying the building for last 30 years and have no plans of relocating.

Over the last year and half they been sporadic with answering emails/calls and not on time with their scheduled owner payments and not getting monthly statements that show funds collected/expenses paid.

Hello,I have considered a career change into financial planning.

You'd pull 10% of THAT to cover your expenses, and your account would keep growing..Look at your opportunity cost / alternative investments...

The California Fair Plan insurance is expensive and has subpar coverage.Thank you in advance!

Unless you plan to room rent long-term, you should make sure your room leases expire at the same time. 

Question 4: I plan on selling the property without a selling agent.

You have to be careful with trusting the seller's expenses as it is RARE that they list all of the expenses.

You'll have to add it at lease renewal and you'll need to ensure that adding the water plus any other increases you are planning does not exceed any cap on rent increases in your jurisdiction. 

If this is a lousy plan , which step should I change?