If you want to offer a "rebate" of some kind after they stay up to date for certain amount of time, I'm more inclined to go that way, but in general theres no real good reason to put yourself as the owner in the middle of the utilities unless they aren't metered in a way to bill directly.  

The ARV is around 525k - the property is currently listed at 450k.

You are not investing in the program.

This way I'm aware of the end buyers buy box before I go locking up contracts with sellers.  

A lot more comes down to price per square foot than people outside that area understand. 

Whichever comes first and makes sense, go with that.  

Welcome to the community!

Quote from @Kelly Giarrocco: I bought a vacant property on Sherriff sale last year on the ********** site.1.

I would give it some time for lenders to catch up on this type of property.

Go to an attorney specializing in Texas real estate transactions who can set the whole thing up - if the attorney you're using is not familiar with the optimal ways to insure wraps you're using the wrong attorney.