You don't want to loose a friend if something goes south. 

Is it a good Idea to advise the seller I am a wholesaler, my concern is that I don't want to take the chance on loosing the chance to obtain a sellers contract.

It could also mean there's a loose wire connection at one of the boxes.

Consider an excessive use clause for utilities.Talk to your neighbors and let them know to notify you with concerns.

Within reason, I did cut ties with one that tried to make what I thought was an excessive fee. 

I know some California investors in that same area that bought new, will rent them for two or three years loosing a little bit each month and then plan on selling them and cashing in on the appreciation.

These types of markets are a great way to enter long term holds without excessive risk while you work on your processes. 

wouldn't that be excessive amount of money?

So that I won’t loose my other qualifying tenant in line to her possible mind changing after she get the final approval by section 8.

Yes, your lease will state that you can go after the tenant for excess damage.