It looks good if the repairs are minimal and she has not delayed a lot of maintenance (hvac,  roof,  water heater,  etc) 

If the tenant has had the water turned off, check to make sure all spigots/faucets are in the "off" position so when the water department comes to turn the water on in my name they won't shut it back off thinking it's flooding inside instead of an open faucet.6.

I have become quite interested in purchasing units in the Allentown area but was curious, what is the trend for utilities, trash, water/sewer, etc?

Its not far from the water (not in a flood plain luckily) and its a big area for summer attraction which should make renting a breeze due to these amenities.  

I plan to start with a single home to test the waters and see if this market is for me.

By the numbers, the cashflow may look better, but the turnover tends to be higher and you have a whole new set of CapEx expenses that have to be supported entirely by that one likely lower-rent unit (it needs its own water heater, HVAC, roof, etc.)If the property isn't a great deal without the garage unit, it won't be a great deal with the garage unit.

Very old and tiny 2/1, but no major upkeep needed in short term as roof, water heater and furnace are all newish.  

.- Water and sewer capacity fees (locally ~$10k just for approval per new dwelling unit).- Sewer sizing.

That water heater is costing you $100  year. but you don't see that cost for years down the road. 

I really appreciate the help as we begin to navigate these waters!