Just because there is a gutter in place, this will not prevent water over flow.

Install landscaping that requires less water.Gadgets that help prevent water damage if water goes where it shouldn't be going: water alarms (place under kitchen sink, next to hot water heater, next to washing machine) and a "dwip" pan for under the dishwasher (if the dishwasher starts to leak, it forces the water away from the back of the cabinet and out onto the kitchen floor where it can be seen.)This is how we do it:Utilities that are variable (cost tied to use) - electricity, natural gas, and water/sewer - tenant paysUtilities that are fixed (flat fee) - garbage/recycling, yard debris - landlord pays (but we factor the cost into the rent.)In our city, both water/sewer and garbage/recycling will become a lien on the property if it is not paid.  

All my leases have m-to-m at an automatic $300 increase inorder to prevent this issue!

Preventative maintenance costs more in the short run but pays off long term.

Two of areas that come to mind as buyer in a lease option or a "contract for deed" for deed transaction are :1) Title: Since you won't receive title until your last payment, the current owner is at risk of  future liens or judgments that could attach to the property before title is transferred.2) Enforcement of performance:  If the seller get's cold feet or something should happen to him & his heirs or someone else take's control of the property, can you be sure that what was promised will be carried out.This is not a comment on the trustworthiness of the seller, it's about educating yourself & having the wisdom & foresight to preventing expensive problems in the future.  

How do you prevent having to pay if a buyer backs out last minute in a wholesale deal???

What the IRS is try to prevent is owners getting 'paid' by putting 'sweat equity' into property and not paying tax on it (my understanding of it). 

Sorry to say in Memphis forget trying to prevent it.

There is no way to prevent the buyer from knowing your mark-up, nor from trying to negotiate a better price.  

We had a few plumbing issues once the renters moved in due to tree roots in the sewer line and a pipe freeze (outside) on a cold winter day, but generally once we fixed it up, the house was rentable for the next couple of years with few repairs required.In terms of managing the property we put an ad in the local paper and that was more or less worthless.