If you are in too low lying of an area, it may not be the wisest long-term play (unless we start building dwellings under water!)

If there is landscaping that you can add where, once established while you live there, requires very little maintenance and water, then do that.

Tenants pay for gas and electric, owner pays for water.

I didn't get a lot of water and it was all manageable by the tenants, but given this happened I want to try to understand the reason and where to look (e.g., do I need to install a new/ better sump pump). 

And very important: most of the fresh water in the world.Also, MN has become landlord-unfriendly.

For example where water is included in the rent. 2.

You need to have enough money, probably in the $100-150k, amount to put the property under contract, and do the feasibility study on the property, Phase 1 Environmental, Property Drawings for roads, water sewer, and utilities, and have a completed budget so you know what your costs are.At that point you can go out and attract investors, I don't thing that developing raw land is necessarily cheaper than buying discounted finished lots. 

Everything seemed to be going well and then... the water main burst at the property. 

Sewer and water systems are not designed for 8 adults taking showers and excreting waste. 

This Water Street property in Delphi, IN, was an attractive investment due to its low purchase price of $21,000 and the potential for significant value addition through targeted renovations.