I'm probably going to let the property sit for a little bit and see if they reduce the price more and then offer a slightly lower as well.

With two meters, he'll pay the $15.00 plus his use, so it wouldn't reduce his bill at all.

Have the 3BR house put all the utilities in their name and then you reduce the rent to offset your average usage.It will only take one month of them keeping their home at 75 degrees in the middle of winter with their bedroom window open to make you regret 'including utilities' in the rent.

A credit from the seller can help reduce closing costs.

If so, you could turn your current place into a rental, and then you can also buy the duplex with a much lower down payment which will reduce the amount you need saved. 

However there could be complications if the owner reduced rent based on your cost of improvements. 

Some of the additional benefits include:Reduction in current tax liability Insurance savingsImmediate increase in cash flowMinimization of recapture upon sale of the assetIdentifying disposition expensesIdentifying repair and maintenance expensesEnergy cost savingsConstruction tax planningPreservation tax credits (historical and new market)Fixed asset reviewDEIRA Reports (reduces insurance premiums, benchmarking reports, energy audits and reserve studies)Depending on the state in which you own the property, you may also qualify for state taxdeductions or credits which can be identified with a thorough cost segregationstudy.Real Estate is such a unique type of investment and pairing it with cost segregation makes it even more unique.

For quite awhile, I would use my company card to cover the costs and then reimburse my company on the monthly Profit and Loss statements, attributing it as a maintenance cost, and reducing their yield.

Do they want to reduce taxes via monthly payments vs one huge lump sum if they were to outright sell?

However, if you have a service-related disability rating of 10% or greater, the closing costs will always be waived.Keep in mind that, although you can put down 0%, if you have any money to put down towards the down payment, it will add equity to the deal and reduce your monthly payment.