I am trying to be creative and buy the place and factor the cost of paying the utilities till the leases are up and then setup new leases where they pay their own utilities. 

Many young investors start by purchasing a place where they can live and rent out spare bedrooms to friends.

He said around $1000 a week for a 2 bedroom place. 

- I went of Rentometer.com, and I saw that the average rent for a 2-bedroom is around $1,000 to $1200 a month.

Purchase price: $325,000 Cash invested: $1,500 Commercial Business Office, Garage & Warehouse - This property was an old 3 bedroom house that another flipper fixed up, enclosed the garage, added a 1,200 sq. ft. metal building (warehouse/shop) before we purchased it.

Otherwise saving up for an investment loan might delay you buying another property unless you decide to go the creative financing route or bring on a money partner. 

I would like to purchase a property for less than $260k to live in and rent out the other bedrooms.

Might need to get creative.

For example land values make a significant difference in my neighborhoods, other places it could be garages, or bedrooms. 

Both units are fairly small single bedrooms.