I spent about 10 hours (and $250) painting chipped paint, Installing some smoke detectors and replacing a window, but was able to keep the deal alive. 

Worst case the board does declne me - is my 200K gone in smoke?

Only actual fire damage is in the kitchen and the rest is smoke damage, I contacted my first hard money lender and because the purchase price was too low they weren't interested.

Do You Change the Locks, Check Smoke Detectors and Make Sure There are Adequate Peep Holes Before Every New Tenant?

I'm thinking this is high, but it is a lot of work and they are providing all of the recessed lighring, materials and that includes adding hardwired smoke and CO detectors throughout the house.

No, normally it would be cigarettes.

Meanwhile I'm interested in video cameras in the laundry room as we've had some users from the neighborhood sneaking in to smoke.

If you can't stand the smoke... 

His argument is that he specifically looked for a lease that didn't stipulate NO SMOKING so that he could smoke inside his home.

Utilities not onInoperable heat supplyMissing or insufficient weather-strippingLoose or torn carpetMissing or cracked electrical outlet cover platesCracked or peeling paint on wallsCracked or broken window panesMissing refrigerator kick platesEvidence of roof leaks/pipe leaksDirty stoves, ovens or walls and unkempt perimeter surrounding houseInsufficient bath ventilation and inoperable smoke detectorsLeaking faucets or plumbingNo temperature/pressure relief on water heatersYou screen your own tenants, then you submit the paperwork to have a tenant approved by the Housing Authority.