So usually utilities are not included. 

This entire coastline is booming with construction and remodelling and is in dire need of help - maybe starting your own handyman business or something that utilizes your current skillset could be a starting point?

@Nick Mcroberts,You potentially could utilize the equity gained by refinancing the property your IRA owns.

Too many people on both sides of the aisle that have utilized the 1031, which as you know just turned 100 years old. 

Insurance, Principle payments, interest, utilities, wages, maintenance, prop mgmt, vacancy, taxesAm I forgetting anything? 

That way you could utilize a low down payment conventional loan, and then refinance out of your FHA when you hit that 20% equity mark in the future!

It doesn't seem right that I'd have to just take it in good faith that they'll submit the claim on my behalf after they've already been made whole.Additionally, I've prorated the rent/utilities for the full number of days they were out of the premises.

Currently, only thinking about Insurance, snow plowing, mowing, taxes, and utilities.

You're approach is very sensible, I will utilize it.

You could even utilize a hard money loan instead and have your friend cover the down payment and interest payments, while paying him interest over the term of his loan or at the end of the project.