You would have ongoing filing requirements with the State and would need to keep business records and documentation.

Electric: is the easiest to split, but may require holes cut in walls to separate the units.Gas: gas lines aren't as flexible as wires, but it can usually be done affordably.Water: most cities will NOT install additional water meters on a property.

It sounds like you've done a lot of the preparation work required to hit the ground running. 

Also start talking to lenders now to understand their requirements 

Because of my savings and lack of expenses, I'm in a very comfortable position to make my first move, but because my income is mid, I'm unable to meet the Debt-to-Income requirements to qualify.

That being said, there won't be any down payment required since you have equity (you're guessing ~55,000 but I wasn't sure if you were meaning the property is ballpark worth ~$175,000, or more than that). 

A property manager not requiring this raises serious red flags.

You won't be able to use conventional financing and must use a non-recourse loan which typically require 40% down.

If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee.

But, today, most judges are requiring a GAL anyway.