The listing says the utilities are all separate.  

@William Ellis , I think you are looking at this correctly.I think it is very smart to still budget for management because if you are going to be doing the management, you should be paid for that separately from how you are paid as the investor.If you are planning to hold for just a few years, you are probably correct your take home cashflow will be higher, but if you're planning to hold for the long term, that extra cash flow should probably be going into a future capex fund so you don't get blindsided when all those things need to be replaced at the same time.

Each unit is metered separately.

You need insurance no matter what, but the business entity separates your personal assets from the liabilities associated with the property.God Bless You!

I would get a lease and a separate option.5)Most legal advice i've heard has said that if i do one property per year i will not fall under dodds frank guidelines.

I was under the impression that the process would be quite different in the case of condo's and town homes, but now I know that the only difference is that they are not detached; they are still separate properties. 

Some cities require you to have a separate business license with the city in order to be a landlord and collect rent (eg, Hemet) and some don't (eg, Lake Elsinore).

Michael,It seem to me that you are asking two separate questions;Firstly: How much should I get for 'sweat' equity?

It was built as a 4-plex, it is not a converted house.All units are separately metered for all utilities except trash (owner pays).

Better check with your attorney.Any portion to the sale price needs to be paid on the option, not the lease, you need separate agreements.