It is a duplex, electric is separate but water and gas are not.Purchase price: 71,000Annual Rent:18,600EXPENSESVacancy:1,860(10%)Maint:1,860(10%)Managment:1116(6%)    750(placement fee 50% of rent)Capex:930(5%)Insurance:1200(est.)Taxes:2,883Garbage:290Total:10,889Annual Mort:3,453.6018,600-14,342.60=4,257.40 cashflowSeems like it could work, i am thinking i will have to bill the tenants for gas/water/sewer after I get the bill. 

We worked for an insurance and securities company that bought cashflows at a discount (including notes AND those lottery winnings you asked about).   

Depending on the system, (and what you're willing to pay for) they may even dig into the drain field to see if it is saturated.The county health department will have records on the locations, sizes, and capacities of the tanks, diversion box,  and drain fields, including an area delineated as a replacement drain field(s). 

I made a claim with my insurance company. 

I would make sure you have a hefty umbrella liability insurance policy and that should suffice.

I'd only pay the monthly landlord insurance (roughly $120) and snow/grass.I don't have the funds to extend an all cash offer but am contemplating working with a hard money lender.

They will have property taxes, insurance, upkeep and liability.

2) will my rental home insurance cover my tenant's damaged car?

Liability and umbrella insurance policy should be sufficient.

We are looking to buy a small apartment building next year, 20-40 units (or larger if we find the right property).Question - Can cost segregation deprecation be used to offset active income from his insurance business?