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

I utilized those funds to purchase 18 rental units.

Security Deposit: 2600Lease states no smoking/painting walls/no hanging things on wallsTenants have moved out and have left two truck loads of garbage to be removed.Damaged doorPainted walls which got on the ceiling and trim Lots of holes on the walls throughout the houseDamage from windows being left open constantly Weed was clearly smoked in the house (smell throughout the place) so we need to deep cleanWater bill wasn't paid so I had to turn back on utilityMissing keyQuoted costs:$450 junk removal (some furniture)$935 for damaged doors/windows, painting cleaning$30 for utility turn onTenants were only there for a year before moving out so a lot of this is beyond normal wear and tear. 

The LLC helps when you are trying to do things like turn on utilities. 

Are there any strategies here to utilize bank funds for our project?

Fully furnished, with all utilities included.

• Should utilities, internet, or services like snow removal/lawn care be included, or not?

There are two main ways to utilize this exemption.

If you made housing free the same bleeding hearts would be complaining about utilities.

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