If talking to more builders does not work out to join you on transaction #1+ and you have enough capital and heavy rehab experience along with a GC / builder doing the project many lenders out there will offer you a lower leverage loan for your first project on your own.  60% finished value and 75% LTC is probably achievable without a builder in your company for the loan. 

Much slower than utilizing a HELOC, but I’m not trying to build an empire and just have a passive income source that eventually allows me to spend my time where I find meaningful.

.  -- If the units are the same footprint, then why not just do 50/50 on utilities for each side and 100% when one is vacant.

@George Bell I also utilize DSCR loans, but I didn't assume in my comment that everyone does.

Maybe with a 10 unit multi but still, very heavy lift.

Hello real estate arbitragers,How do you typically handle utilities in arbitrage deals?

Enter real estate as a form of an asset.Real estate steps into the factor with two forms of strength: scarcity & utility.

That's why for deals like this, you will see people utilize bridge loans where they will lend up to 75% LTV and fund capex potentially because the property has problems and they are looking more at the future value and operations.

Then tell the tenant they need to work out a payment plan with the utilities so that the water can remain on. 

You get the benefits of being close to all the recreation without the heavy snowfall.