My rental condo in Asheville, NC was spared damage from the flood, but when the city finally turned the water back on a few days ago, they somehow overpressurized and blew out a fitting inside a wall. 

@Alecia Loveless is correct--tenants need access 24/7 to their electric service panel, water and heat, assuming those are individual utilities for each unit. 

However, I think some upcoming life changes may be the right opportunity for me to dip my toes in the water in real estate investing.I live in Pflugerville, TX (25 minutes from downtown Austin) and will soon be moving to Portland, OR, for my dream job.

I just don't want to buy that close to the water due to flooding concerns.  

If you can manage to keep up with the real estate market in these markets that we have come to hit, and still be able to navigate the unchartered waters.

The licensed plumbers do not get permits for water heaters, I have never heard of one being red tagged solely for not having a permit so I do not get permits (and know no one that does) for swapping a water heater.  

For example, I have a subject property that has 1682 SF on the main floor and 810 SF of finished basement (the majority of which is about 8 feet in height with the exception of some bulkheads to hide the mechanicals) and 271 of semi-finished basement that is a utility room basically (washer/dryer, freezer, hot water heater, furnace, some storage).

I'd personally say pulling your water heater out and replacing with a wall mount on demand one, would be worth the cost to have in unit washer dryer if you are staying there or renting it, it would be worth it.its always worth doing the big stuff well and correct even if you are cleaning up after someone, the long term hold always prevails, its just a little frustrating front sometimes, but hang in there!

Primarily desert washes, but also near a creek....So I would go knock on doors and ask neighbors when it has flooded and what they think about the area......maybe call the County water board and ask then what has happened there in the past.

It covers internet, water, trash, cable, and exterior (roof, siding, etc.).