As far as the owner paying water/sewer, this can easily be solved by passing it onto the renter and putting the stipulation in the lease that the renter is responsible for reimbursing the owner.  

If allowed, include verbiage for a substantial penalty for not reimbursing you for any util within a reasonable specified period. 

I've offered to split the difference, etc. he will only accept full reimbursement. 

You may have to reimburse the DPA if you pull it out the first year or two. 

You should reimburse him for the cost.

As my work is completed I get 'draws' from the lender to reimburse my contractor. 

Most lenders do reimbursement.

You always want a breakdown of labor vs material and usually with this strategy you are paying for material or directly reimbursing the subs when they submit receipts.Property manager as project manager/project manager with subs- This approach is good as well where you can actually pay your property manager a "project management fee" and they will oversee your rehab, get quotes, check on work, etc.

I had one management company go as far to complete aid requests for each tenant impacted by COVID and submit requests for rent reimbursement on their behalf in order to get them current.

On the current one, I'm hoping to get near 100% of my costs reimbursed, including all fees and holding costs, and force about 50K of equity, while breaking even / slightly positive on rent once rented.