Only when the owners has to pay the utilities because the units are not separately metered.

This step would include understanding City zoning & platting, locating utilities, researching City codes for development requirements (big ones include detention), etc. 

A realtor who used to have a PM company called "JBS Realty" until this month.He used to manage 8 of my properties and is currently refusing to pay out multiple 5-figures worth of rents/property reserves/security deposits/unpaid utility bills owed. 

When there's tenants already occupying the property, there's often times different leases that were signed among the tenants.Additionally, renting by room usually sees higher tenant turnover which in turn causes more work for the PM.Other challenges to consider:- Disputes/conflicts among tenants (different personalities if a tenant doesn't know the others prior)- Occupancy limits- Splitting utilities (what if someone uses more water?)

My question is - what is the best strategy for utilizing my home equity and buying my first rental?

@Natali Cobb depends on what is common for the area.Also, you can put in your ad that W/D negotiable and see what the responses are.

I see a lot of posts for furnished monthly stays where owners are fretting over utilities and how to ensure a tenant doesn't abuse their being provided.

Commonly done.

Utilities are typically $350-450/month for a 3/2.If you have any more questions feel free to reach out!

The one thing most all of them have in common is they take longer than they say lol.