.$400/month for water, sewer, electric, gas, internet, and cable may be optimistic.

Internet would be installed by then and you're missing out on prime season right now.- If you mean satellite internet (vs cable internet), I personally can't stand it.  

As for your specific questions, we would probably need more details, and probably more than should be posted on the internet to advise if this is a good idea for your situation.

so any payoff with points in less than a year juices the lenders APR.And of course i am sure your aware but anyone on the internet or social media contacting you saying they are a private lender at 3 to 5% is 99.9% simply a pump and dump advance fee crook.. as seen on American Greed Episode  Remington financial  which was brought down by a lady named Ingrid Robinson right there in your neighborhood.. she tried to buy an Island in Clear Lake up in Lake co just North of you..

Or, are they responsible for getting their own internet service?

They're WiFi now, so it's simpler (if you have Internet access for the box that gets the readings.)I'd do it since in PDX water/sewer is close to $100/unit/mon for 2 beds. 

We didn't have internet as a contingent.

Your money's obviously burning a hole in your pocket, but asking strangers on the Internet what to do with it might not be the wisest option.

I would add, when you did the inspection, the gas should have been turned on to get a proper full inspection, and at that time you would have found out about the problems when the gas company says they can't turn it on for the inspection.I would wager that the cost to get everything vented and make gas company happy is <$1000 and perhaps <$500.

Every piece of information you need is available FOR FREE on the internet.