I’m trying to utilize 1% rule and it’s tough with current market 

I didn't, and the people at Eagle Rock, who approved permits and necessary utility connections, were not very cooperative, which made the process more stressful than it had to be.I've seen lots listed on Zillow and the Aggressive Real Estate web site. 

What are the average utility costs, and who typically pays them (tenant/owner)?

Validate planning zoning requirements and access to utilities.

We don't have that guideline for cash-outs, we just utilize the 1007. 

If you have zero vacancies, zero tenant damage, make sure utilities (especially heat) stay on every winter even if the tenant doesn’t pay.  

I'm a member of one local STR page that vets owners by requiring they see a utility bill with the address and the owner's name.

I would however recommend elevating anything placed in a non-elevated utility room to ensure damage is unlikely in future storms.

Regarding property management, utilizing local property managers can save you time, and using PropStream effectively for filtering properties by distress level and location will certainly help with finding stronger deals.

The one percent and 2 percent rule ive never looked at ... cap rate is .. meh .. its there - what im most concerned with is the price of the home relative to comparables and cash on cash to start.   9)  I look  the other way if it is a multi unit that is not separately metered - thats always one of my criteria here in pgh as there are a lot of older homes and a good portion you wind up worrying about who will cover utilities.