I’m an energetic and active person with great connections in the commercial construction/utility space.

That could mean a foundation is built where it shouldn't be, like over a drain pipe in the utility right away.

So, why would a tenant, looking at several properties, not go with the cheapest home irregardless of utilities?

At that stage, is it possible to utilize the $200k funds from my 1031 exchange as down payment on that note? 

We utilize STR on 30 day minimums to strike a nice balance between revenue and management.

The city keeps saying their main reason for doing it is to help keep the cost of living lower and the main complaint from them was that their utilities were too high.

Airing the house out as much as possible, then if needed renting or utilizing an Ozone cleaner (?

You need a solid base to work from before truly utilizing these resources. 

The owner had the Master bedroom and bathroom, I would have gotten the smaller bedroom for $750/month plus utilities, and he was renting out the basement for $850/month plus utilities.You could even look out to western Howard County in the Fulton/Maple Lawn area.

I'm always a big advocate of utilizing the FHA loan as one of your first MF properties.