Add to that in rental properties that tenants pay utilities, so the owner isn't saving money.

Make sure you have the correct STR insurance.You can write off supplies, utilities etc as business expenses.

I have met overly nice landlords that gave a tenant 6 months of free rent and a 4-year long, $300 under-market rent lease extension that the tenant can cancel anytime but the landlord cannot - all because that tenant had some utility service interruptions due to a rehab downstairs.

One important thing to note, you will be forced to turn around and use the proceeds from the sale to purchase new properties pretty quickly in order utilize the 1031 exchange or pay capital gains tax.

Airdna shows yearly predicted income for the address of 111k, and it looks like our yearly costs to break even on the property would run about 38k all in for mortgage, insurance, taxes, utilities, maintenance, etc. 

Do I simply divide the land (with utilities installed) and sell 4 lots, or should I partner with a builder to put 4 homes on there and then sell?

Rent should ideally be a little more expensive than how you have it set because you'll have to take into account CapEx, taxes, utilities, and all the other fun stuff that comes with ownership.

I'm particularly focused on those of us utilizing the Brrrr method. 

All new mechanicals and tenant paid utilities.

If they had a verbal agreement with the last tenant,   and the last tenant gave notice or has officially abandoned per definition thereof  (you can look for things like them having cancelled their utility accounts, emptied unit of their belongings, etc)  then they can't prove anything and maybe you can use that approach.