The utilities are worth 6-7k

Any utilities?

The reason being is that one of the option for reducing taxes on active income (such as flipping) is by utilizing an S election...which is an election made on an LLC. 

I have never owned a home, so I have no real assets to put up to be approved finance through a hard money lender. so my question stems, should I use a FHA  loan for my fist investment (and home) for a buy and hold property , and then later utilize a hard money lender for additional Buy and hold investments?

The owner estimated the costs, utilities, maintenance, and repairs to be approximately $35k per year as he pays all the utilities for the tenants.

I'm just starting out in the business side of this industry and am getting ready to make contracts or find a source for them.

Charles County, MO, and I unknowingly house-hacked a property at a resort a few years ago.My goal is to increase my position in RE and learn as much about the industry as possible.I'm happy to be part of the community now (officially) and look forward to interacting with you all.

The property owner currently pays the utilities and it needs some work. 

The Aerospace industry has a large presence there (and there's also a prison in Lancaster).

Most septic systems supporting a single home are sized one at a time unless planned as part of a larger community.Between the land development, utility costs and bringing in a home it can be a good cash burn, so make sure you have it all spec'd out.