Some cities (I have experience with Castro Valley providing a monetary credit for a full sewer line replacement) have monies set aside and will reimburse you a small % upon completion of the job.In Alameda County sewer lines need to be inspected upon sale of a home (In most cities, not the whole county) and the responsibility to fix the line coming off of the city main line (Generally located in the middle, or middle-ish of the road) falls on the owner of the home if the line is faulty.

Also theres no option to buy so obviously when youre lease is up any upgrades and maintenance you did to it will not be reimbursed or gain you equity.

The only major "income" is my loans from college, which after it pays for tuition, I save the reimbursements.

I was considering offering him something like 12% of collected monthly rental income with reimbursement for materials.  

Not sure that will translate to higher reimbursement rates which will mean increased income.  

But typically you have to front the money for materials and labor and you only get reimbursed when the lender inspects the work.

You expended resources and time which has cost you actual dollars and that without the certificates and the leases you will be forced to reprice your offer assuming all of the tenants live there rent free or back out and seek reimbursement for your costs due to the seller withholding material facts.However, I am making a REALLY big assumption here based on what you posted.

If rehired we will reimburse this fee after six months of employment.

You might have to follow through with paying your full bid amount (to not lose your deposit), then FNMA would have to have the sale rescinded, and reimburse you, perhaps less any fees.

He will not be reimbursed for them either.