Or you never encounter that situation and I am maybe over analyzing the thing!

A major obstacle that I'm encountering is the owner occupancy vs renters ration.  

Taking into consideration the homes you have bought that are more new, as well as all roof materials you have encountered...

Brandon Johnson I've encountered this as well.

I would head to an office supply store and buy blank sticker labels.

The real  value lies in networking with other pros, growing your own personal network and learning and many strategies as possible.I have encountered dozens of investors listening to podcasts and reading books, but once they found a mentor to hold them accountable and help with goal setting, strategy building, etc., their results exploded.Gino

After acceptance I got a report of termite inspection and treatment, but there is no evidence of termites where they said they treated them, nor is there a sticker indicating that treatment was performed, but there are active termites in another location. 

You are right that I am looking for advice on this one "messy situation" because a huge number of houses in San Antonio were damaged with hail last year, so I was hoping there was someone in this area who might be able to give me advice or an idea or strategy I hadn't thought about to help negotiate this issue as I feel I am going to encounter it again.

Legal use is determined only by the building department, which usually means actually going down to the building department, giving them the plat and lot, and seeing what they come back with as the legal use.I've encountered many times in my investing career (including just last month) where the tax assessor and building department had different # of units, and the building department is the one that matters.Usually the issue with making something a 3rd legal unit is whether the lot size is big enough, especially whether there is enough parking.

I had one tell me the tenant had been fine, and the tenant has been the worst tenant I have ever encountered.