What if the storm caused extensive damage?

It was for the wealthy, now its the middle class in many instances.

Many lenders offer flexible financing terms up to 85% in some instances for investment property transactions. 

- What are the downsides for the landlord, compared to a traditional residential lease to a family for instance?

You will have to first notify the tenants' case manager at their local housing authority who will likely want to dig into why you don't want to renew - in which case like others have mentioned, it's a good time to lawyer up and/or document every instance of them breaking lease guidelines. 

For instance, I'm great at finance and project management while I'm a work in progress for construction knowledge.

One of the properties had foundation issues; I was aware of this from the inspection report but it ended up being quite extensive.

One of the properties had foundation issues; I was aware of this from the inspection report but it ended up being quite extensive.

They can provide guidance on potential legal options and rights concerning the city’s demands and the lender.Negotiate with the City:Seek Extensions or Variances: Your friend can request an extension on the deadline to comply or apply for variances that might allow the property to meet less stringent requirements.Explore Grants or Subsidies: Check if there are any local, state, or federal grants or subsidies available for renovating older properties, especially those providing low-income housing.Engage with the Lender:Discuss Financial Hardship: Present the case to the lender, explaining the situation and the financial hardship imposed by the new building codes.Propose a Loan Modification: Suggest modifying the loan terms, such as extending the loan period, reducing interest rates, or even deferring payments temporarily.Negotiate a Short Sale: If the property must be demolished and rebuilt, your friend can discuss the possibility of a short sale where the lender agrees to accept less than the owed amount to avoid foreclosure.Explore Refinance or New Loans:Seek New Financing Options: Look for other financial institutions or private lenders willing to provide financing for renovation or rebuilding.

For instance, because you're closing on the 7th, all payments could be due on the 7th day of the month.