Also, if you list the property at the higher rate because you’re including SOME of the electric utilities (because you won’t be able to eliminate 100% of the bill.) you’re going to lose potential tenants that are filtering by rent and/or see similar properties for less, causing longer vacancies.

They came back to our requests stating they'd pay for electrical issues which is 2.6k and dismissed the rest saying that they have interest and that the appraisal came back higher (they did not get the appraisal from us so I'm guessing they're assuming).

Since it is going to be a rental, first concentrate on any items that need maintenance immediately that prevent it from being rented now (creating cash flow)(including all parts to be working, such as HVAC, plumbing, electrical, etc.). 

It is not my job, as an appraiser, to know what the proper egress, electrical codes, etc, are to constitute a bedroom, that's what permits are for and I am not going to make myself liable for YOUR benefit.Regarding advertising - It typically would need to be disclosed within the listing, probably in the private remarks section in the mls.

I used to work for a utility in operations, power generation, energy trading and in Strategic planning, and know just enough about the electrical grid to be dangerous.Renewables are a significantly larger impact than when I was working in the business. 

I replaced most of the wiring and panels to address the electrical issues.

@Ashish D.I quit my day job as an electrical engineer from buying tax liens and getting houses for cheap that I turned into rentals.

Net income = $39,240Monthly operating expenses are as follows: Trash - $33, Landscaping/yard - $66, Electric - tenants pay, Water - $95, Maintenance $87Monthly taxes about 3KSo, gross expenses are at $41,064If I'm doing the calculations correctly, my net operating income is -$21,888 and cap rate is -3.4%.Obviously the current numbers look terrible for this investment, but I feel like the rent should be raised significantly based on comps (above 2K each unit). 

Electrical wiring has been redone to normal.

You can buy all the equipment in electric supply stores.