old thread but let me give you my 2 cent if you're still around or for the lucky others who may read this postLet me tell you this loud and clear, If you can, RUN away from the building and safety dpt.

I think what is missing from your model is anything resembling a plan. 

Currently in research mode. 

I moved out of my parents safety blanket when I was 18 and started my freshman year of college living in an apartment with my best friend from high school.

Similarly as @Joe Villeneuve has pointed out. 9/10 times you will be fine as long as you have a solid strategy with a margin of safety and manageable leverage.

I am not sure if they can come up with 10% down payment right a way especially they may need reserve money to install fire alarm equipment and fixture in the property for patients safety and code compliance in the next 3 months.

The banks see this as a safety in some way and a track record of reliable income .

I am currently in research mode - listening to podcasts, reading forum and other info on this site, etc. 

Based just on the facts you have stated here and common sense, you don’t have any legal obligations to reign in spirits.But of course, you might be the kind of landlord who wants to go above and beyond to ensure your tenant’s comfort and perception of safety.

Thier discount gives them a target yeild, but they also want safety.