Utilities are OFTEN overlooked so reach out to power, telecom, gas (or go all electric), water, and sewer to make sure you understand what it would take to get separately metered services from the primary house.

Several have mentioned utilizing low down payment second home loans for qualifying.

Typically the more extensive the rehab the higher the value add.  

for one tenant it says that the landlord is responsible for utilities, and for the other tenant it says that the tenant is responsible for utilities.

@David F.As Russell mentioned co-ops are probably 1/2 the price of a condo and you would also have extensive costs to set up a co-op and typically it’s my understanding the builder funds the first 1-2 years of reserves.

Did they also do utilities and roads, or was that left for builder? 

Consider cleaning, lawn care, snow removal and supplies as well as utilities  in your calculations.  

Opt 1) utilizing our savings in the brokerage account and emergency fund and pay for it all up front. 

I am interested in utilizing space again for group meetings, workshops, and for clients who may still desire private space.  

My basic underwriting making some standard assumptions on HOA expenses, 20% down, 7% interest rate, 30 year mortgage, utilities, supplies, and maintenance costs shows a loss of about $22k per year if you are self managing.