Not really a big issue in grand scheme of things.

This is a small issue, in the grand scheme of real estate. 

If someone is trying to convince you it’s not a pyramid scheme, it’s a pyramid scheme.

Who cares if the shingles aren't a perfect match or if he doesn't' like the colour of the shed. 

If you don’t reinvest and you were paying $300/year in servicing fees your return is cut in half as it’s 1700 compared to $3500.This is not to say this is not an awesome strategy as it is, as are partials and the original poster knows what he is doing - I mention this as I have seen others (not anyone who has posted) use guru mindtricks on people to make this look a lot easier than it is and turn it into a get rich quick scheme.

On the other hand, if you are brand new and viewing STRs as a "get rich quick" scheme, we are extremely conservative lending if at all. 

I've read one real estate book but it was kind of a pyramid scheme book I happen to be gifted.

However, REI is a "get rich slow scheme" as you may have heard before.

I haven’t heard of that but I don’t really do student rentals.On your question about the utilities, if it was me I would just increase the rent and be done with it, trying to divide it up by some kind of square footage scheme or something like that, especially if you’re dealing with young people, and billing it back to them, it’s just going to be a big hassle.

Let YOUR attorney devise a method to safely acquire the asset via assignment or even a more elaborate scheme while keeping you out of trouble.