I'd get a task rabbit or your PM to take a picture outside every month to help ensure the yard is maintained...watered, weeded, cut.   

But for the number of homes that did get flooded, there were several that didn't - up to you to decide if the glass is half empty or half full.There are ways to mitigate your financial risk - look for properties outside flood zones (keep in mind that Harvey saw flooding in areas that were considered not to be flood zones but I'd argue that these maps become more accurate the more data we get).

I think you have to get creative, have clear goals & work your a$$ off initially - this is not a ‘dip your toe in the water’ kinda strategy.

Can I separate the bills for water and sewer so we both pay our own bills?

At minimum, it should protect you for any recorded liens (tax, water bills) and bogus claims to ownership (aunt Sally coming out of the woodwork to claim ownership).

Electric can easily be metered separate and water can have a sub meter by your plumber (which would require the effort of someone reading that meter each month on behalf of the owner to bill the tenant back.

On top of that people do not loose properties to forclosure anymore; they are not under water, they can just sell it.

What are they using gas for at the moment water?  

Leave for the owners to run in electrical, water, sewer.First check everything is possible.Run your numbers.Make an offer that works for you. 

In NEPA (Scranton area) we've used licensed plumbers to install new gas boilers (either steam or hot water w circulating pump) for far less.