Do you utilize in-fill lots from the city?

If it looks to be a solid deal then use your knowledge of which expenses should exist and if utilities are in question you can always call the provider.

Most of my utility consumption is gas.

@Sam Peterson You can utilize different online companies (web, phone apps, etc.) for this but if you're new to REI you could gain traction by making your own.

You would utilize and bridge loan to build the asset and stabilize thereafter with a DSCR product.  

The way to handle it is to allocate expenses based on the percentage of the home’s square footage used for rental purposes.Here’s how it works:Calculate Rental Percentage: Add up the square footage of both the in-law suite and the rented room, then divide by the total square footage of the house.Apply This Percentage: Use this rental percentage to deduct a proportionate share of expenses like repairs, utilities, and mortgage interest.This post does not create a CPA-Client relationship.

Can you bill back utilities to the residents?

Most tax professionals do not advise their clients to utilize this approach and it may raise concerns under IRS examination.

1) The $1832 S8 rent probably includes all utilities.

You can decide to utilize those funds to pay it off once you have that much or buy more property with it, especially if we get a recession where cash is king.