The building should be maintained well CAM needs to be done and it needs to look good and be desirable  but taking a C Class to B Class or A Class can be expensive and not worth the costGetting good rents by reasonable improvments that are cost effective in my experience leads to more flow than a total gut. 

Tenants should be responsible for keeping the property clean and report incidents in a timely matter, the damage that is done by the bath tub leaking for month can be huge and that’s their fault for not reporting to you. 

Absentee Owners have been popular for a long time, and are apparently still somewhat effective (people are still mailing to them) but they are getting multiple offers to buy their home.

https://www.moco-inc.com/blog/wa-state-source-of-income-law-effective-sept-30/

You should use either LLC’s (the old and expensive way) or a Series LLC (the new and more cost/time effective way).

The landlord has the right to change the terms of the NEW lease which will take effect after the current one has expired. 

You can use the security deposit to cover lost rent, cleaning, and unpaid pet penalties.

Is there a cheap and effective way to accomplish getting my tenants to pay their own water?

Something like "mother in law apartment perfect for your extended family" or something to that effect.

Clean, functional, well priced units rent quickly regardless of whether they are 1BR or 2BR.