Currently the top unit is leased for 10 more months at $550 and $25 for water (I pay for water) and tenant pays heat/electric.

How do you know if your tenants are paying the water bill on time when you own multiple properties?

I was then quoted for about $60/mo but the problem is they only want to do their basic coverage which doesn't cover water damage.Any suggestion on what should I be getting as a coverage and why?

As soon as I and renewed the lease the tenant wrote me this long message with all these thing wrong, including drain smells bad(she’s been putting bleach down the drain to kill the odor, the lights in the kitchen and bedroom are flickering(this ones easily fixable) & the bathroom floor is in-caving because of water damage(she suggested a new shower door).

You mentioned capital improvements, would this be similar to an upgrade rather than fixing AC or replacing water heater etc?

The home is in complete shambles (no plumbing, no electrical, water damage etc.) about $150K in repairs are needed.The home is in a great location and would sell for a large profit if fixed up. 

@Allan Smith I do cold calling instead of direct mail but have experienced the exact same thing.

But, you could even tell them that emergencies (think water damage or structural damage) could be authorized without your consent.However, also consider if there's someone else State-side you could designate with a limited or durable Power of Attorney (which you need to do anyway since you're deploying).

There is absolutely something a newbie could miss.There will often be back taxes, back water bills, other liens.

Most agents are just trying to stay above water for the first few months.