I'd have to do most of the work myself to stay within the $50K mentioned above. 4-6 months of work.I had an inspection done without electricity, water, gas.

Tenants pay water, gas, electric, trash, snow removal and lawn cutting.

I typically consider between 5% and 8% for vacancy depending on area etc.Will tenants pay all the common expenses - sewage, water, gas, electricity, garbage, lawn care?

What appears advantageous today could turn into a big negative tomorrow." seems to validate the fact that I should in fact take advantage of this now and not wait, does it not? 

Same if you borrowed money secured by a gas station and intended to use the money to send your daughter to college.

.- Main gas line (if equipped). 

Utilities (elect, gas, water, sewer, cable/int) will be covered by tenant.

I would say again however, that neither you nor your PM are licensed contractors and if this gentleman is a licensed contractor he IS by default the subject matter expert and his opinion IS valid whether you agree with it nor not - it is valid until you get another licensed contractor to disprove it... most 'home inspectors' are not licensed contractors and in fact most home inspection reports actually state right on them that the home inspector is not responsible for missed items. 

@Bobby Lee, thank you for your answer and those are very valid insights.

There is a whole lot to the process.You need a civil engineer to do site plan, stormwater design etc, architect to design and Gas to bid on final plans and specs.