As has been said, you past the cost on to the consumer, and raise the rent rate (while advertising that these utilities are included in the rent). 

But since I am currently living here I get the savings on utilities so that is worth it to me.

It would be so ideal if each partner can utilize what they are good at to build a path to success together! 

We have done extensive work on two of the properties and enjoyed the process but both properties are well out of the area in which we live so Using those contractors is not possible.

If the house has been vandalized and copper stolen, you are also looking at an extensive amount of sheetrock damage, usually doors, possibly broken windows, damaged plumbing fixtures, and damaged HVAC systems.

Also, if there is already a large spread between returns on your existing portfolio versus other properties in the same market, then it begs the question of whether your existing properties are being under-utilized somehow. 

Considering I only have the ability to put down about 10% at this point, what other options do I have for acquiring this property outside of owner financing since this property doesn't need an extensive rehab and is currently occupied with tenants. 

Also, I have to pay for normal utilities that he would normally cover for another tenant like water and sewer which also reduced the monthly rent.

Utilizing my data to provide me with the best odds of reaching a potential seller is only half of the equation.

All the things associated with running and maintaining a rental are the responsibility of the property manager, i.e. maintenance, placing tenants, collecting rents, paying utilities.