That will require a rough and final inspection. 2) When installing drywall you will need a nail/screw pattern inspection. 3) You will need to provide 'conditioned air' to these rooms..how are you going to do this and that will require inspection.Will you have to increase the size of the electrical panel?

The property has been in excellent condition since it was built two years ago, and I’ve lived there myself without experiencing any similar issues.The lease is a standard Texas lease, and I’m seeking advice on how to approach this situation fairly.

Selling a home, no matter the condition, is always about price.

Air conditioned air leaking to crawlspace making crawlspace heat or cold depending on season causing more power bill to tenants.

The Smokies are a favorite of mine, but beware it is an ultra competitive market. 

If you are thinking Texas, the problem is so is everyone else, so your competition is much higher and unless your property is special, you can only compete on price.I hope this helps.

That's why they call it Sub-2, it's subject to the terms and conditions of the existing mortgage.

These loans allow buyers to purchase a property “AS IS, WHERE IS”.Renovation loans are available in 30, 20- and 15-year fixed rate terms and can be used to purchase owner occupied, second home and investment properties.By time the renovations are completed, the home needs to be in move-in, live-in condition and conceptually ready to be resold without repair issues.Other Important Items to Know about “Conventional” Renovation LoansMaximum – Minimum Purchase/Upgrade Amounts:Maximum: Limited to 75% of the “after improved” valueOccupancy: Primary, Second Homes, Investment PropertiesUnits: 1-4 unit propertiesRenovation Term:The renovation term for this program is a maximum of 180 days.The Borrower(s) is responsible for the work being completed within the escrow period.

Conventional at 5% down would cap you at 3% concessions, but generally is more lenient with employment history and property condition. 

What's the overall condition of the property?