(and of course it will have been used before it overflows)  My exposure to investment property is through REIT's only because I live in one of the outer boroughs of NYC and I see no point in spending a ridiculously high amount of money for a building that's going  to produce a ridiculously low cash flow (that's IF everyone paid and IF nothing broke- big IF's)  add to that gross over regulation along with moronic laws that give all the power to the tenant  and I can't see a reason for me, if I want to be able to sleep at night and have peace of mind, to own physical property. 

the ARV is $140,000, it is a 2bed 1bath home in a great neighborhood. if i were to acquire this property and rent it out for $1200, it can produce a cash flow of about 420/month.

What is the best way to charge your tenants for utilities if there's only one meter?

Your input is noted and will be utilized going forward.Much appreciated,Kim Phillips

I'm planning to ask the owner for his utilities bills. 5) I’m not sure how to increase the rents to afford the repairs as time goes on.

Also check with a CPA, I'm not sure you're allowed to depreciate a property that isn't rented, maybe they have a work around.So you're comparing only projected capital gain on a property (including it's holding costs for utilities, insurance, taxes and repairs) vs the state fund. 

If you can handle the negative cash flow, I have little doubt that Los Angeles will produce a good return over the long term (10+ years).Good luck

The norm in the area for multifamily units is for tenants to pay all utilities except water.

Determine the difference in the Tenant's utility bill.

I wanted to share the ultra investor friendly agent that I utilize for my properties on the jersey shore.