As to utilities, depends on whether tenants pay for it in the area, or owner.

Credit Score is about 650 for each of the couple. 90k revolving credit card debt..with utilization > 95%.However rental history is good.

I see this as a possible strategy to build a few homes, BUT I still have so much land left to utilize.

What is the best way to charge your tenants for utilities if there's only one meter?

Your input is noted and will be utilized going forward.Much appreciated,Kim Phillips

I'm planning to ask the owner for his utilities bills. 5) I’m not sure how to increase the rents to afford the repairs as time goes on.

Also check with a CPA, I'm not sure you're allowed to depreciate a property that isn't rented, maybe they have a work around.So you're comparing only projected capital gain on a property (including it's holding costs for utilities, insurance, taxes and repairs) vs the state fund. 

The norm in the area for multifamily units is for tenants to pay all utilities except water.

Determine the difference in the Tenant's utility bill.

The criteria selection is extensive however depending on your County I’ve found that some of the criteria isn’t covered in the records so when searching it fails to result any.