If you can separate it out then you can usually either let them setup their own account with the utility (best option) or submeter them, but in most states you cannot charge any more than you spent.

First question out of the box is whether your sister will be paying you rent. 

I could go into an essay on this topic as I've essentially spent 2 years working on me trying to have a go at this entrepreneurial life...but for me it boiled down to 3 major things. 

So I spent the next few years learning, and reading, and improving my credit, and paying off debts, and increasing my income, and eventually, years later, I bought a house!

C)Drop Box?

If I spent money on it (say 1-2 months) before it becomes rental property, can I expense it for tax report? 

Think outside the "box" Pun intended.  

So it will require installing some wire from the load center (breaker box).If it's gas, then you just need a 120v circuit but will need gas piped to the location.The outlet for the washer needs to be GFCI.As the previous poster mentioned, the drain line could get a bit challenging as you'll need a 2" drain pipe plus venting for that pipe.

Spent a year becoming Facebook pls and then bought the house from him!

I have a few questions:  -100% hard money - do you know how much you spent on financing costs, closing costs, etc.?