I hope to utilize the rent hacking approach by buying a multifamily that I can live in and rent out the remaining units.

To flip, you need to buy at discount prices fast for cash.Using the FHA to buy is great, but it is my opinion it is better utilized for longer hold times as it will take longer to get the value up enough to make a profit. 

I primarily do the fix ups and handle management, but like I said If i can make 30-50k on a filp in 3-5 months I choose that over renting out properties that will pull in 20k a year then after taxes, ins, utilities, you will clear 12-14k.I treat rentals as just a stepping stone or beginning foundation.

Or does the property have to be "put into service" before I can claim my losses. the expenses that I have accumulated for the 1 month in 2014 are property taxes, insurance, utilities and a few repairs/upgrades. 

Mortgage, taxes, utilities, and maintenance.

We have a lease that stipulates rent is $525 per month and the tenant is responsible for all utilities.  

I dont think you can if you are utilizing a third party escrow account - even in-house escrow account would hinder this. 

Also, $400/mo in utilities?

Many title searches/insurance policies supplied by REO title firms will not include, and have exceptions for, any unrecorded liens....such as utilities, code violation fines, etc.

I wouldn't put any utilities in my name.