Utilities will be among the first in for cleanup actions. 

Many started off in 2010 - 2019 with downhill terrain and the wind at their back.

The 7 isles project hasn't even started.

If it's the difference between $1800 and $2200 but you have to cover utilities too, not worth it. 

There is the Experian Boost that adds monthly utility bills as credit and various apps and facebook groups.

Also, be sure to check with the section 8 agency managing the tenants - sometimes if you pass on an additional cost like that they will no longer be eligible to live there if the rent and utilities exceed what they were approved for.

So lets start with you want to finance properites but looking for them to cashflow.

all materials, all labor costs to others, Not you, utilities, interest payments, permits, licenses, auto/truck expenses, tools needed are all deductable. 

Is there a way to utilize part of my Traditional IRA funds as a down payment on a SFH investment property without being penalized?

Start by getting familiar with your local market.