In Reno and metro areas, insurance companies primarily focus on roofs, the age of the building, wiring updates, and water pipes, as mentioned @Cameron Moore.

Why not start with a small turnkey rental property and test the water?

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.).

I know some might disagree.The challenge is if someone applies and meets all your criteria and you reject them, I would hate for you to end up in some legal hot water.

@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. 

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!

To ty Coos county and Bend together brought back memories of a trip I took in the late 90s when Bandon Dunes first opened.Friend of mine in Santa Rosa has a home at Cross Water and a hanger there at the airport and of course a nice turbine twin to put in it.We departed SR for Bandon  played golf that day spent the night at  Bandon dunes  got up early  played 18 holes at Bandon again jumped into his bird flew over to Sunriver got there by 12  teed off at cross water at about 1pm and played 18 holes there.. so may one of the few 4 somes to ever play Bandon and Cross water in Sunriver on the same day  LOL..   

The home was in rough shape—think mold, a hole in the roof, and years of water damage.

OP, keep in mind not having access to heating and sharing same water heater and etc will require an easygoing tenant in the nextgen.