I wrote back and said I will reimburse the tenant for a $15 bottle of home pest control that they spray themselves (should last through several applications), or they can pay for their own pest service.  

The tenants pay above base rent with CAM to reimburse.

He has no hope for the other deadbeat tenant ever reimbursing him.

Laws vary greatly from state to state, but it would be highly unusual to get reimbursed for "any rehab done" to a tax sale property if the previous owner successfully challenged the sale.  

(C) The department may request a hearing before the Administrative Law Court for an order requiring a loan broker to refund or reimburse any advance fee or any other fee taken in violation of Section 34-36-20 or taken as a result of a false, misleading, or deceptive representation as described in Section 34-36-20.

Similarly, you cannot pay for any repairs personally and then expect to be reimbursed by your IRA.  

Dig in deeply on the CAM reimbursement conditions.  

I just pay in cash or credit card, but use that receipt to get reimbursed by the property.

In PA at least, at closing the seller is reimbursed for taxes paid extending into the next year so it's more then just the 2 months.

That would help with the self-employment tax issue.You could just write off mileage expense through the S Corp and have the company reimburse you personally for the expenses (except any monthly payment to the bank).