The self insurance account Ben describes sounds pointless, and resource draining.

Will $40k annually really be all that you need if you drain all of your cash to purchase $500k in property?

There are other expenses not considered (vacancy, maintenance, etc) and those could end up being a big drain as well.

A French drain is in place, but we are in the process of adding more drainage.

Leaves had been stuffed down the pipes-they came up through my tub when the upstairs washing machine drained.

The water company will not go inside the house to check these things - all they do is watch the reading on the water meter.If I could get access to the house,  I would go around the house and make sure all the faucets are turned off - kitchen sink, bathroom sink, tub/shower, laundry sink (if it has one), refrigerator icemaker connection, outdoor garden hose connections, drain valve on water heater, etc. 

@Paul Smetona, an interior french drain will run you $4,500 - $$6,500.

This project also needed the crawls space to be completely redone; new drain tile and sump pump system, foundation repair, encapsulation, rim joists and floor joist, 14 new supports with cement footings, plus the duct work, electrical, plumbing, and main drain lines... easily about $25k to contract out... my cost was about $2,200.Sometimes I say, " I save more money than I make".  

.), the the reserves come with the business (unless the existing owners drain them into retained earnings and pay them out as dividends first).  

I'm in my mid-30s and feel like my hour glass is being drained with little control of my own freedom.