I have seen individuals take a lien in the secondary position to decrease that downpayment, but you would most likely need to use a good lender who would be comfortable with and allow a secondary.   

The government closes the whole life tax deferral allowability.  

My suggestion would be to cap your utilities at a certain amount and have Tenants pay anything over that amount.That will help you manage your expenses, and also allow Tenants to gage their usage each month, and make adjustments if they don't want to go over the allotted amount.As far as collection, provide the bill showing any overages and just have them pay for it along with their rent. 

So, for a small duplex, what price range are you targeting and how much (light, medium, or heavy) rehab would be acceptable?

Looked at HELOC on the rental, but is not allowed in Texas.Will probably apply for a 0% APR CC for a lot of expenses/material , but still need cash for labor/ vendors.Looked into personal loan , but 2 banks stated loan can not be used for investment property.

You can setup a "guest mode" allowing the guest to enter their check-out date.

You could look into enforcing late fees if your lease allows it or even start the eviction process to show you're serious.

This method allows each partner to defer capital gains tax on their portion of the property.It's important to perform the "drop" (distribution of property to partners) well in advance of the "swap" (sale or exchange) to comply with the "held for investment" rule.

Maybe even allow for a small kitchenette for full privacy, although it would be attached to the house with a connecting door.The yard has enough room to allow for it.

@Cameron Nordin A 1031 exchange allows you to defer capital gains taxes and depreciation recapture, but it does not transfer previously taken cost segregation depreciation to the new property.