Its 3 bed 1bath units, that currently rent for 575 a side, owner pays water/sewer, tenant pays everything else. about 900 sq ft a side.

Sale price: $40,000Rent: $1100 ($65 paid by tenant; $1035 paid by Section 8)Taxes: $3200 per yearInsurance: $900 per yearWater: $60-75 per monthMonthly Maintenance: unknownCap Ex: needs a new water heater within the next year; has a newer roofI'll get an inspection.

Oh well, water under the bridge. 

-Roof - roof has a leak -Tons of water damage - mold is horrible in the basement- Walls are all beat up with holes everywhere( looks like their was a royal rumble in the house) - Kitchen ceiling is cut open- bathroom shower wall is ripped open and ceiling of shower is cracking- windows are leaking - kitchen floor is buckled up from water damage- Both upper and lower deck are in horrible condition( i was honestly afraid to walk on it) - Outside molding around windows is cracked and damaged- all outside lights are broken- carpets every single one is ruined- Bathroom sink is shot- Kitchen cabinets all have water damage- And again ill say their is a big mold problem so i have no idea how much that will cost.The condo has 6 rooms , 2 bed rooms , 2 full baths , 1 half bath 1280 sq ft.

Finding a lender that will close without turning water on (hubzu policy) has been challenging to say the least.I read somewhere about some people just turning the water on in their own names (buyer name) for inspections/appraisals.

One property is waiting on the city to turn the water on, and it's gotten so delayed with the city that the sellers are having to be in contact with the mayor.

The new restrictions bar residents and commercial water users from using drinkable water to hose off sidewalks and driveways, water lawns or gardens to the point of causing runoff, wash cars without a shutoff nozzle and using potable water in fountains.California drought: $500-a-day water fines passed

There is water damage in the basement NOT under the plumbing, so I'm guessing its the radiant heat. 

I'll definitely want to be sure that I've got no water issues in the basement.Should I expect to see this happen in more places around the perimeter as it's already happened once?

@ Robin SecordHi RobinI read in the " Wall Street Journal" this week where many customers (in Detroit)  had their water turned off for non payment of their bills.