In PA there are court rulings regarding foreign utility loads being billed to a tenant; see link:http://www.biggerpockets.com/forums/52/topics/1073...So probably best to just split it all now. 

The court is unlikely to award you legal fees. 

That normally is assigned by the court when the owner dies without a trust.

A mini split is ideal, but even separate baseboard controls will keep tenants comfortable.I’d keep the rehab clean, durable, and functional.

It’s mostly about safety (no peeling paint, working smoke detectors, no broken windows, functioning HVAC/plumbing/electric).

Improve the lookup function.  

The lawyers went after the contractor's business and personal property, and eventually put enough heat for the contractor to repay without having to go to court - not only the money he walked off with but legal costs too.

If you don't have this, because of some kind of homemade or gentlemen's agreement, then you will likely need a court to enforce what you say are extra principal and they say are service fees. 

Just because a release of lien exists, doesn’t mean the release will stand up in court.

Do not buy any non-functional houses that are really funky, or something that is on a major street etc. in this market you will be stuck with it forever.