While a tank style water heater will try to stratify (layer) hot and cold water to keep them from mixing right away by the time you use most of the tank of hot water the water will be well mixed. 

All the above, and not just waterfront also pool homes.

Lower credit scores shrink the buyer pool.

A Pool Camera is  creepy.

The market turned spring of last year due to the inventory still going up and buyer demand becoming watered down.

I understand the price of the others are enticing but you always get what you pay for and variable expenses like unreimbursed water bills and deposits not covering damages usually happen in these types of areas along with lawsuits.In better assets assuming property management is decent maintenance is the next thing that can really get you. 

Man, you've thrown blood in the water ($800k of it) and now the sharks are circling!

I'll add a few thoughts on the "sitting forever" concern since that's actually useful intel for investors.When properties sit in these smaller markets, it usually means one of two things: either they're overpriced for the local buyer pool, or the seller demographic is mostly retail buyers who want turnkey and these need work.

I would always keep a pool table if you have space. 

Exterior siding, yard including if has pool/spa, and many more.