With the lower price point rentals, you basically just tread water.

Pros: Diverse job market, low unemployment, great resilience during recessions, nice appreciation, 1% rule can be hit if you look hard enough, great economy, good schools, Midwest nice.Cons: Extreme weather at times (hot/humid summers, tornadoes/hail, brutal cold in Jan/Feb), high insurance premiums, property taxes also really high.

Over a weekend during which my tenant was not home, the condo became flooded and water went through the flooring and flooded the office below.  

The rental might be vacant for a month,(8% loss) or a tenant might not pay for a month while you pay to evict them.(8-16% loss)  A $1,000 appliance/water heater, or a $8k rook or hvac unit might go out.(5-40% loss)  You should be paying a PM 8%.

I use Reonomy for cold out reach and I like it overall. 

That certificate would show open taxes, water, housing violations, citations, condemnations, receiverships, construction liens and other municipal liens.

You might need a 2nd well if you're not on city water. 

I estimate high of what the bill would be and put it on their lease, I have not had any issues this way and if the water bill goes up, I will increase on the next lease. 

If the security deposit is not going to cover the the water bill or damages, try to scare him into covering the balance by hinting at sending him to collections and it will appear on any future credit pulls he may have done.

I'm skeptical but I'm willing to test the water to something small first.