I get to the closing table last night and sign all the paperwork and get an email from the seller stating he is backing out of the deal. 

The only way to know if pipes are leaking is to run water through them.I'd appreciate if you could share your thoughts!

The trees outside aren't old enough to present a serious hazard to the sewer lines and the properties were all fitted with copper water lines to start with. 

Will you have tenants pay water, sewer, garbage, electric, etc? 

E.g. shingles, drywall, flooring, trim, paint, water heaters, HVAC, etc.

Gross Income: $20,400Annual Expenses: $13,988.40Annual Cash Flow: $6,411.60Annual expenses, include- water, lawn care, capex, property manager, maintenance, vacancy, Insurance, taxes. 

There is an active water leak coming from her apartment for the second time.

Building a wall and door to enclose the duct work and Hot Water Heaters - $1675Move the hot water heaters from under stairs to new room - $1265Move the washer/dryer from the laundry room under the stairs for tenant upstairs - (cutting concrete to move drain lines and installing new 220 outlet) - $3,520Remove wall in laundry. take out current door and add another door - reframe, sheetrock, - $4,180Create new bathroom with washer/dryer added, new shower/tub, new vanity, new toilet - $7150New kitchen cabinets and countertops - $4,290Move stove - new outlet - $675Replace bedroom ceiling - $715Replace pocket door in bedroom - $300Create master walk-in closet off current bedroom - $775Paint entire unit - $1300This includes labor and materials.

What value would I bring to the table with no capital in the game?

@Andy Mirza I went over the report with the appraiser, the only Comp I questioned was an REO in the same building that sold two  months ago that was badly damaged, water damage in two locations, old carpet, damaged kitchen floors, broken HVAC, nothing new or upgraded and that unit sold for $234,000 as an REO.Is my agent a good one is definitely a good question, After the latest price drop I told her this isn't my primary residence so I don't have the typical emotional attachments some sellers have where they want the highest prices in the neighborhood, Do we have to do these incremental small price drops, I just want what the appraisal/market says it's worth or really close to it so lets get it sold, that's when the discussion about not pricing it at appraisal came in due to the buyers wanting concessions/discounts.I didn't know over 60 days on the MLS was happening in some markets.