@Kelly Conrad the mechanics of transferring the name is easy. 

Frankly, lending has become pretty mechanical based on a loan file and IMO it's because really "reading" people is a lost art, most loan officers don't have a clue as they are just about the numbers and loan rules.

Put a tenant in a house with bad mechanicals?

But he can't get all three without one of the above mechanisms.  

The building is currently being rented out and used as a mechanics shop (not including the land behind it).

the first was a SFR where mechanical and CAP Expenses were required.

Ask for the rent rollAsk for 2 to 3 years copies of Schedule E (see what was reported for income & expenses)- Usually only get this after you've made an offer & have put up EMDRequest the age of the mechanical systems & if any deferred maintenance is needed Research recently sold similar properties to determine if the CAP Rate is competitive

The mechanicals (circuit breaker, water heater, etc) seem to have been updated within the last decade or so.

This permit needs to be applied for by the GC doing the job, and will go under review by the city to make sure all major requirements are met for structural, zoning, setbacks, and MEP (mechanical, electrical, plumbing).

If a permit is not pulled on major mechanical, then liability lands solely on your lap.