If the water bill is $100 a month, increase the price by 20% (or whatever you decide is fair) to compensate you for the time required to split and bill and to cover additional use when tenants squander the utility.

You're also able to work with the utility company to install an additional meter.

In general these are either growth markets or markets short housing that has significant hurdles to adding additional housing. 

Loss of use is foryour additional expenses if you can not live there due to a covered claim (ie.

I’d recommend a consultation with an attorney specializing in these, in addition to an accountant.

Quote from @Tim Buckingham: @Jonathan Moody Good information but I'd like to add some additional points (note that your mileage will vary due to numerous variables). 

Many lenders also impose additional requirements such as owner-occupancy, and/or that one lender make all of the institutional loans in the building.- Valuation: The variety of financing products available as individual tenant in common loans remains limited, and the terms are generally less favorable than either apartment building loans or condominium loans.

Additionally, I would suggest you run some financial calculations such as cash on cash return as well as any appreciation from the asset if/when you sell.

These are professionals with additional training and a stricter code of ethics.

Additional Resources to check, 'FYIs', in case you want to learn more about rezoning in the future)-Look up your address on the city's zoning map here to see how properties in your immediate vicinity are zoned.