The sellers cut the utilities off before closing had occurred and before the deed had recorded.

For beginning investors looking into asset protection I often break it down into the 5 pillars of asset protection (but there are many more.)1st pillar is avoiding unnecessary and risky activities (don't drink and drive, insurance generally won’t cover your poor decisions) and take good care of your investments - these simple steps will help you prevent lawsuits before they even occur.2nd pillar is a good insurance policy as that cover the majority of your exposure.

You may need to craft a detailed letter with the help of your real estate attorney and/or architect to state what occurred and include those letters and see what happens.   1) Maybe likely but will be tough without suing them. 2) You first need to see what your property survey says.

As far as covering this in a lease agreement, I see no legal or ethical way to have a tenant hold a landlord harmless for any injury that occurs at a property due to disrepair/lack of maintenance.  

If there is an open violation that occurred when the previous owner had it, and they didn't disclose, you may have some legal remedy.

Numbers game for us, so no harm at all.

I think a reduction in gross rental income of 50% is more than what would likely occur.

If I come across a good deal that is a short sale, where the down payment on the offer I make will be covered by my current flip proceeds [assuming the bank and seller give the thumbs up], is their any harm in making the offer now?

I often break it down into the "five pillars" of protecting your assets.1st pillar is avoiding unnecessary and risky activities (don't drink and drive, insurance generally won’t cover your poor decisions) and take good care of your investments - these simple steps will help you prevent lawsuits before they even occur.2nd pillar is a good insurance policy as that cover the majority of your exposure.

If they cause my flight to occur, they will be charged for this too - all in small claims.