I've purchased a number of homes with utilities off.

There are two ways one can utilize these “creative” strategies.  

Okay, (imo) utilizing financing to profit is the least utilized strategy; but a close second is the straight optionI’m not referring to the lease option that some use successfully when leasing a SFR to a tenant - I’m referring to a straight option to purchase.Let me provide an actual example. 

You need to follow your state laws first regarding the utilities.

Flat monthly utility reimbursement (most common)This is what you’re already thinking about and it’s usually the cleanest solution.• Calculate a 12-month average of total utilities• Divide by unit count (or bedroom count if uneven)• Charge a flat monthly utility reimbursement as a separate line itemExample:$600 total utilities ÷ 2 units = $300 per unitYou might charge $150–$200 per unit and absorb the rest.Pros:• Predictable for tenants• Easy to explain• No submeter install cost• Works well when rents are below marketCons:• Owner still carries some usage riskThis is very common and generally accepted by tenants if disclosed clearly.2.

In California, yes a security deposit can be used to cover unpaid obligations that were the tenant’s responsibility under the lease, as long as you provide an itemized deduction within 21 days and proper documentation.Under CA Civil Code §1950.5, a landlord may deduct from the deposit for:Unpaid rentUnpaid utilities the tenant was contractually responsible forDamage or losses beyond normal wear and tearOther necessary costs incurred because the tenant failed to meet lease obligationsIn your case:1.

I pay all utilities. 

While we don’t work with foreign investors directly, here in the US, rental real estate is often used to offset taxes especially if you are a high W2 income earner or business owner, and understanding how passive vs non-passive income interacts with your other income is key.

It's not that a resident just becomes a number, rather that you can only retain so many interactions had in a day.Fair Housing is the main point that comes to mind, but I also think that a separate point that Brandon is making is to get in the habit of documenting everything.

If you have real estate meetups near you (which I am confident you do) I would explore those more so you can have some in person interactions with like minded people.