Convert hard money loan to regular bank loan - requirements

[John Smith]

I'm considering a hard money loan for a property with some issues. (1) Permit noncompliance. (2) Neighbor's house built such that it encroaches on subject property. These issues are challenging but solvable.

Clearly one exit strategy is just to sell it when the hard money loan is due.

What about if I wanted to convert it to a regular bank loan when the hard money loan is due? Is it true that each and every thing on the following list typically need to be solved in order to qualify for a regular loan?

1. There must be a clean title with no issues (such as neighbor's encroachment).
2. There must be no permit violations
3. It must be making income, with tenants in there for some length of time.

I'm pretty sure 1 is required, but is 2 always required? Is 3 required or helpful?