My wife and I have obtained three traditional loans and one lease with the option to purchase, resulting in most banks turning us down based on debt to income (non-portfolio lenders). 

On some older properties where perhaps you have one water meter for 2-3-4 units or one gas meter for 2-3-4 units, or units that share hot water, something like that the owner might pay. 

Because a large percentage of the charges are base fees that do not change based on use!

Paying for a Section 8 investment course is the equivalent of an aspiring cook paying for a course titled: How To Boil Water

It's hard to say offer amount without knowing the rehab part since that could blow this out the water.  

Granted this was on plots of land I didn't pay for, and that are already connected to the city's water and sewer, so there's a lot of savings there, but I'm hoping if it turns out to be this good of a deal I can still scoop up land and keep going

That would mean there is an approved site plan that includes roads, water, sewer, storm water, curb, gutter and any required buffers.

Don’t assume that you will have water.

There are two options I have offered and I want to get a check on here if I am off base with my offer or if I need to push harder.

Quote from @James Jefferson: Hi, I have a family member that had a reverse mortgage on their property it's a 3b 1b 1 acre of land heats by oil no hvac and on well water.