Assuming your market is out of wack with that pricing, which CA always is, you do not invest.Owners of rent controlled properties are in a very difficult situation, as you will also be in if you buy, so your goal is to take advantage of that fact.

I know there are ways to avoid this in the future, but I'm hoping to find a solution for the current situation. 

How would i handle this situation.

Another investor may have hit a market the year before, but since then, some other people have become motivated sellers because their life situation has changed.

Seller situations change all the time. 

I added the sewer/trash/water because I would prefer to pay my own to avoid lien situations w/TPU.

I think your first move should be to get your financial situation a little more stable, which should be fairly easy for a college educated individual in this economy.

Trees are a liability if it looks like a dangerous situation.

Just let them know your situation and they will be able to advise you as the best structure to set up to meet your investing needs.

I have a tough situation I would really appreciate some help on.