In my past professional life I worked as an attorney for a hotel development company that owned over 1B in assets yet as a company we  did not feel the need to utilize entity structures nearly as complexed or  convoluted as what you arranged. 

Is this method a commonly used method by investors?

How are utilities delivered and who pays for what?

In my city's codes and ordinances it states that one of the common rental property violations is having "over four unrelated individuals residing in a dwelling unit" would the dwelling unit be considered the entire house or just the part contained in the lease (aka the room)?

It is an IRS approved federal income tax tool that increases near term cash flow by utilizing shorter recovery periods for depreciation to accelerate return on investment.

Is there any legal obligation to pay the unpaid utilities?

PS: dropped a few pics of structures I saw onlineSituation: -I am looking to scale my portfolio by utilizing out of state small-multifamily and working with Section 8 tenets. 

This is pretty common in Oklahoma 

I can also tell you who to absolutely positively avoid out there as well because I have had to fire two PMs I used to utilize out there.

Quickbooks is far more than the average investor needs for accounting, and it doesn't do the other 17 tasks a landlord wants like marketing property, tracking maintenance, landlord reports, etc.Software is a common question on BiggerPockets.