All utilities are within the area. 

We looked at CA and found it wanting for good deals.Whichever state you decide to invest in, you may want to consider using off market strategies utilizing creative finance.

Depends of course on how the deals work out.Adding to Benjamin's suggestion, by utilizing cost segregation studies, you can take advantage of the accelerated depreciation for shorter life assets in lieu of depreciating the entire property over 27.5-years.

This is where I would start, I would also try to utilize public records.

Add in HOA and utilities and misc costs you are probably at $3500 per month to operate, which is $42000 per year. 

One part I am struggling with it to figure out how much I would be paying for utilities.

Utilize a property management platform that automates tasks for you.  

This helps ensure the rental price suggestions are incredibly accurate by avoiding less similar locations.For property condition assessments, PadStats utilizes AI and computer vision to score properties based on Fannie Mae condition guidelines, which has been a game-changer for precision in rental valuations.They are also expanding to include automated property valuations and crime data heatmaps, making it an even more comprehensive tool for real estate professionals.As for non-AI tools, I still find Asana and Stessa indispensable for workflow management and portfolio tracking.

I am thinking normal utilities being provided in a communal fashion similar to many pitch your tent campgrounds.

Since it may be possible, the commercially zoned property may legally have more units than the Subject, etc.So, my guess is the newly created 5-unit property would be valued as such and comped to similar 5-unit properties, as well as utilizing cap rates and income, etc.