I know I need to get a credit card and keep my utilization ratio low, but I wouldn't know much about the process of actually receiving a conventional loan from a bank or any type of loan.

That's three months of mortgage and utilities, the cost of flooring, and the cost of painting.

Or is it better to utilize different strategies?

If you’re looking at retrofitting to separate heating for each unit (like furnaces or mini-splits), you might be looking at a higher upfront cost, but it can shift utility expenses to tenants and improve your NOI.I’d factor in boiler age and efficiency when analyzing deals and if it’s near the end of its life, negotiate a price reduction or a credit.

Hope this helps...https://www.starkhelpcentral.com/rent-utilities-assistance

They were fine with my score (about 740), but have issue with the percentage of personal credit I am utilizing, so that discussion also petered out.Apparently, I have a lending profile right now, that is not attractive to mainstream lending programs.Any advice?

I underestimated utilities in my early years, so I ensure those are properly captured (electricity, gas, water and trash).

Some expenses, such as utilities, property taxes, and interest, incurred during this period may also be capitalized.

Gave him 10 months free space rent and paid for all his utility hookups. 

S8 standard voucher amounts INCLUDE all utilities.