Water bill for the month is $100.Unit 1: ($100 * 1/2) * (2 tenants / 5 tenants) + ($100 * 1/2) * (1000 sqft / 1500 sqft) = $63.33Unit 2: ($100 * 1/2) * (3 tenants / 5 tenants) + ($100 * 1/2) * (500 sqft / 1500 sqft) = $36.67This third method is much more complex to do, but a simple Excel spreadsheet can help alleviate the headache of doing this monthly.There are other ones you can do, like bathroom total ratios, dishwasher vs no dishwasher / washing machine vs no washing machine if the units differ.In the end, you recoup the full cost of the utility bills and bill it as rent + Utility usage (variable) (Check with local landlord laws to determine if you are able to do this).

I am making calls and having conversations and these pretty much feel like regular loans but with crappy rates.  

I would pay him back since all I brought was regular check book.

I don't plan on living in it.1) Can I get a regular residential mortage on it (with normal rates and down payment), or do I have to get an investment type mortgage?

There are two vibrant REIA groups that meet regularly.

This may result in the tenant having to leave however with no back ground information on the tenant you are safer finding your own tenant than keeping one you may have issues with starting out.Keep in mind finding/replacing tenants is simply part of the responsibilities landlords deal with on a regular bases in the operation of their business.

I would pay him back since all I brought was regular check book.

To know your equity you must know your market, often it is a educated guess as you will see on the forums people regularly posting ARV. 

I always paint or white wash depending on the color.  

At times an investor will see your hunger and that you are attending regularly and will inquire of your goals and will initiate.