Our water bill suddenly tripled and we thought there was a leak somewhere. 

If you call the public utility, they can usually give you the average monthly bill for that property.

I wouldn’t rent to individuals who don’t make at least 3x rent (and ideally they’d make more than that as that’s just a floor), I also wouldn’t accept a co-signer who doesn’t make at least 5x rent because they have their own bills and expenses, even if their credit scores check out I’d be concerned about them bringing in enough on a monthly basis to ensure that I was always getting paid, I’d honestly rather my unit be vacant than to rent to unqualified tenants ESPECIALLY in New York where eviction is a nightmare and the state doesn’t care about landlords in the least

They combine electric, water, sewer, and trash into one bill (maybe this is actually different for MF, with the trash especially, I'm not sure).

@Bill Brandt thanks for the feedback.

As you point out, there are numerous transfers that are not taxable events.This would be a transfer for purposes of dissolving a partnership.

Originally posted by @Bill Brandt:You’ll have to talk to an “expert” but I wonder if you’d be better off buying the house with a “1 year right of occupancy” for $122k instead.

I know he would not be especially cooperative with numerous people walking through due to COVID (one of the reasons I was thinking it was best to remove him).  

Put every dollar you earn into the HELOC until you need to use it to pay bills.

I agree with @Joe Funari, If you don't want a big tax bill and are interestedin continuing in real estate investing you need to consider a 1031 exchange which allows you to sell investment real estate and buy replacement investment real estate and indefinitely defer all tax on gain and depreciation recapture.