As others have said, it is really risky since they can cancel the policy yet squat in your property, making you vulnerable to a suit. 

Iron work that is not locked down is always vulnerable to these thieves.

The possibility of a leak, however, gets into installer qualifications and methods which I think as investors we do have degree of control over.My opinion on the permit question is to use business considerations to gauge risk of going whatever direction one goes, and to do your best to make sure you have a qualified installer.My post was made following the post by the OP @Bienes Raices where it was stated the hot water heater in question was electric, implying that it was not vulnerable to explosion of the sort that a gas leak would produce.

I would suggest you contact social services for your area and ask some questions in general say your concerned about your future tenant and feel he is vulnerable and needs assistance or will need assistance once you give notice he has to move because your buying the property, your concerned because of his declining health your afraid of trip and falls.  

I could go on and on, but I'm shocked that every rental doesn't go up in flames.

That leaves you vulnerable to a downturn.

If you plan on leveraging and plan to do it in a short amount of time IMO I would pace myself to allow time for learning in b/w and start off slow.I was too eager and in a rush to jump in and made many mistakes along the way, which could have saved me a lot of money if I spent the time reading on BP rather than pick up as many properties b/c I could leverage and had the cash.All it takes is one eviction or suit to realize how much there is to learn and how vulnerable your assets are.

I hate purchase lease backs.I want the former owner out of property so I have control to sell or lease option or land contract to a great payor.And look at foreclosure rescue laws.From the OH Attorney Genderal..Foreclosure Rescue Scams Foreclosure rescue scams prey on the most vulnerable Ohio consumers – those facing foreclosure.

Turns out, it's like the 2nd most vulnerable location (after New Orleans) in the U.S.

In addition, the uncertainty of this issue has created a window of opportunity for unethical lawyers and contractors to prey upon vulnerable populations.