I live in Joliet but grew up in Wilmington and would love the chance to interact with some local investors.

. ($500 upper / $500 lower), property taxes ~2500, insurance ~$600, no major expenses on my end, utilities all in tenants name.Basement has water issues and foundation issues.

Your personal assets and cash are on the line but does not come close to what you are being sued for.Regardless of if you did increase your coverage, if the insurance coverage is not adequate to cover whatever liability you face, and you dont have an LLC to insulate personal assets from business -- your personal assets is at risk.If you do have an LLC, theoretically, only the assets of the LLC would be utilized to address any tort that arises in the course of doing business as the LLC and would/should shield your personal assets if the insurance is not adequate. 

I see a lot of people forget to add in the cost of utilities with their holding costs for the duration of the project, especially if you are having contractors working there.  

Here are the details of my first offer and what is was based on:5 Units (all rented) = 1,9951 House 2/1 (rented) = 650 7 RV Hookups @ 350 (3 rented) = 1400Expenses = 14,400 Asking: 249,000Declared Gross Income: 55,200OFFER 1 (Based on above)-Owner FinancedPrice: 240,000Down: 20%(48,000)Interest: 8%Terms: 10 year balloon on 30 amortizationReturns: Cash on Cash= 28% Cash Flow= 1153Reality5 Units (all rented) = 1,9951 House 2/1 (rented) = 650 7 RV Hookups @ 230 (3 rented) = 690Expenses = 14,400 Asking: 249,000Actual Declared 2014 Gross Income: 37,364Actual Declared 204 Expenses: 34,367Given this information the expenses are obviously bloated, the utilizes are not meter separated (where 50% of the expenses come from) and the rents are below market so my question is what should my next offer look like?

Certainly, arranging for tenants to pay utilities would be a big plus (but the rents might need lowering a bit at the same time)?

I've always had a passion for real estate and have gained a significant amount of knowledge in my current position, but I want to learn more from other real estate professionals about how this industry works.I'm excited to be in a place where I can interact with, and learn from, other real estate professionals!

One suggestion is to utilize the Network: Events & Happenings tab at the top of the screen.

There is still a senior lien that is not being paid and will eventually foreclose but given that you now have title you can take possession, turn on utilities, and rent the property out.

Multi-family is trickier and more involved than SFH units anyway, and then you have the added stress of it being very far away and not connected to public utilities.