It is better to price out the things you will know in advance like insurance, property taxes, management, utilities etc. and use a much smaller percentage for unpredictable things like repairs.

Purchase price: $197,500FHA 3.5% down: $7,000Mortgage, taxes, Insurance: $1,5352 Bedroom rent: $1,1001 Bedroom which I'll live in for a year but could rent for $850Barber shop in building: $650The only thing I pay for is heating which was $2,000 total for last year the rest of utilities or paid by tenants.My question here is with me owner occupying I will clear $215 but once I move out I will clear $1,065.

Utilities ?

Some of the criteria I use:-Rent is not current-Most items of value have been removed -utilities are off-Neighbors have not seen them or saw them moving outAbsolutely no need to go thru the eviction process if your criteria is met. 

My rent, utilities, and WiFi are a combined $1100.

I currently have an IRA with $80,000 that I would like to utilize for my first investment.

Plus the small percentage change you get on the 15 year term versus the 30 would be better utilized to invest with than paying more off your house each month.

These are for a unit with washer/dryer accessibility and tenant paying utilities. 

What utility expenses are covered by the owner is another one...what else are you looking at?

How to estimate utility costs in a particular area?