It seems to me that the utilities are unable to be turned on at this point therefore making a meaningful housing inspection impossible along with any chance of me renegotiating the purchase price with the bank or getting an accurate repair estimate for my renovation loan. 

Since your a newer investor, and unless you have a specific reason why you want to go the Seller financing route, I'd strongly encourage you to go the 'traditional' route through a bank for financing.

You want to focus on one area so that you're familiar with the area and so that you have meaningful relationships with brokers, property managers, and other professionals that will ultimately lead to you getting better deals and better information.2.

@Dave Spooner thanks for the encouragement.

I always try to have words of encouragement for everyone, but there are a few things you should know.I assume you are aware the property is in a rough part of town, so it will come witha few management isuues.

Again, I would encourage you to explore using a low-down payment conventional mortgage instead of FHA.What about pest control, lawn care, snow removal, and admin/professional fees?

Speculation on what we should see over the next 6 months is encouraged on this thread!

"Cheating" is not something I'd encourage since you may be bordering on fraud, which in a loan app is prosecutable.For reference, read up on 2009/2010 and RE loans.

@Brady Hlad If you're new to BP I always encourage people to use the search bar.

@Joseph Pochinskas - It is definitely okay and I HIGHLY encourage you to just go with the 2 flat and keep moving forward.