My husband and I are about to buy a home that needs major renovations: electrical, all new kitchen & baths, flooring, removing or minimizing a few walls for an open layout and if possible raising a few ceilings. 

Tenants are paying electric and gas only.

Ask them straight up if it fits into their schedule.If you are looking for an alternate route, im sure there is a licensed subcontractor (HVAC, Plumbing, Electrical) in town who would be willing to GC the project for you.  

The inspection came back with one electrical item that the seller fixed.  

Realtors costs for the sale ($7800 at 6% of $130K), insurance, holding costs, utilities and electrical and have a buffer for unknowns.

Seems like you could just tie into the homes electricity, water, and a septic.

I would also try and put the electric on the same system is individual metering is not possible.

Taking each room down to the studs and replacing all finishes, electrical and plumbing, lighting, walls, paint, trim, tile, etc.Kitchen renovations (excluding separately purchased cabinets): $2,719 - Some electrical work, paint, trim, lighting, etc.If I am allowed to place all $41,740 in the 7 year bucket, as opposed to the 27.5 year bucket, then I am looking at a year 1 after tax savings of ~$6.4K, compared with ~$3.9K in the less favorable scenario.

I found a duplex, but am reluctant to purchase because the water, gas, and electric are not metered.I understand it can be expensive to setup a separate meter with the city, but am not sure the costs of gas and electric? 

I suspect the utilities are split (at least gas and electric) but I would bet that the water/sewer/trash are shared so I expect that OPEX cost to be significant.