The pipes have to be dewinterized so I would have a plumbing professional there prior and when the water gets turned back on just in case.

You may have water traveling down the bedroom wall, then across the dining room ceiling to the lowest spot which happens to be there.

The big deals will be vacancy, capex and appliances. (3 water heaters, stoves, fridges, microwaves?

If all else fails, but bars on the windows and turn them into prison cells. keep in mind though the floors with drains I have seen those in bathrooms of 10 million dollar homes I have been in personally in Singapore its pretty standard in some areas does not necessarily mean ghetto.

5 percent down, standard 30 year loan How did you add value to the deal?

Unfortunately, you said some magic words that chum's the waters so que the "please contact me PLEASE CONTACT ME" replies vs actually answering to what you posted...... 

Maintenance and repairs typically range from 5-7% of rental income, compared to the standard 10%, as new builds have fewer immediate issues.

Year 2 had some large expenses, including some CapEx items (water heater, roof).

I have had a home destroyed by fire; never by water.

IE at the time if you built on all the hundreds of thousands of lots there you would have perpetual grid lock not to mention water quality etc etc.