I have done a few flips and long-term rentals in the past but I am trying to get started with short-term rentals and utilizing AirBnb and/or VRBO.

Assuming numbers are for year 2, when you rent it out.  1) Make sure all utilities are in the tenant's name, including sewer/water, trash, etc. 

Anyone able to tell me what the average utility costs are in that area?

In my experience as a property manager, I can tell you that any time we need to act on an owner's behalf with an outside agency (utilities, city inspection offices, housing authorities, attorneys), we need to show proof that we have been authorized to act on behalf of the owner that is named on the tax record. 

All city utilities.

I definitely will utilize the network and appreciate the guidance.

We utilized a combination of seller financing and private capital to take it down.

Is it realistic to expect $2500 a month in holding costs to include the mortgage payment, taxes, utilities and insurance?

(closing costs to buy, cost of money during project, utilities, insurance, architectural drawings, Permitting, closing costs to sell, etc...) 

Learned a ton about these utilities that has helped me in my career as a realtor today.