First of all even if you owned the machines and were getting the full 100% of the take - this will not reimburse you for the utilities you will use.

If the previous bill was not paid, I pay it, add a $25 service fee, and then have the tenant reimburse me.

As you note, you don't get to deduct any repair expenses for your rental property if those expenses were reimbursed by your insurance company.Same for the new furnace.

Lawsuit may require reimbursement of all collected rents3.

If we are talking two DIRECT water meters You would need to supply it meaning you would need to pay for it and then hope that the tenant reimburses you.

I have no direct experience with this however in thinking about possibilities...Could you agree on a labor rate for your work and then upon the sale of the property, pay back the cash partner, pay yourself the rate * hrs, as well as reimburse whomever for the materials and then split the rest 50/50?

The 5% would make all the difference up front since it will reimburse us of our reno costs.

Your contractor gets reimbursed after certain inspections are completed.  

I've also had potential partnerships fall apart because I insisted on paperwork hat says I would be reimbursed my rate for the rehab. 

He will not be reimbursed for them either.