I initially felt that I would therefore cover the cost of the windshield to help put but the damage to the frame requires more body work to make the car safe and that would cost at least $2500.

@Richard Chang, Question #1 The world of fractional ownership is the wild west with little regulatory consistency in product or platform.  

The question here is what is the likelihood someone would complain/ a government body would act on it.Even if the current use is illegal, all of this is a bit of a risk/return calculation.

If it's a tax credit deal, there would have been a regulatory agreement executed as part of the loan docs.

You will need closer to $10k before it is all said and done unless you cut corners which could jeopardize your interest in the property or create additional costs, regulatory concerns and issues with bring the REO to market.  

innitial list of repairs itemized cost sheet for getting a hard money loan, does any body have a actual cost estimate cheat sheet

The bank might not want to put in writing that they are waiving their right to acceleration (due on sale) b/c of regulatory issues.

It has put many small operators out the type of operation you are describing.There is also the issue of being in Compliance with numerous state and federal laws and the only way to do that in a manner that regulatory agencies will find acceptable is to have a formal Compliance Management System in place and actually in use.

I don't know anything about Atlanta or College Park, so it may be a different regulatory environment down there. 

Gwinnett county has a "stupid" rule that says you need two able bodied people for EACH bedroom, to make certain the eviction is done in less than 90 minutes - for the entire house contents.