I was thinking I'd buy an acre of land that has city electricy and water available, and pay that off so that it can be used for collateral one house at a time.  

We also do a walk through, set expectations for maintenance, filters, lawn, garbage and go over the function of GFCI's, shut off locations (water, power, gas).

Does federal lands have water and sewer running thru it?

I'd suggest posting your location as prices will vary depending where you are (as will usage of the HVAC).The price difference is quite a bit. 

My water usage bill is the same,  general lability coverage is the same, if and when I have to replace my water service line it will cost the same, the cost for my lawncare and snow removal costs the same, exterminating services cost the same and the list goes on.   

The place could also survive on LT rent or seasonal rental, which is popular in this quaint village on the water for Summer and shoulder seasons.It's one of those two-story old 1890 brick buildings.

...in its simplest form, you just divvy up the water bill 10 ways....watch water usage drop.  

The HUD inspection the next day finds a water stain on the ceiling and fails the property.  

In fact two week ago I tried reasoning with a brainwashed Pace Morby follower in these forums who stated he would  happily complete a seller finance deal for more than FMV value, effectively putting him under water if he could acquire the property without using any of his money and the property cash flowed.

I know one option is to wade into the waters of private funding.