Technically owners are supposed to be the ones actually renewing these licenses anyway since you have to make certain affirmations about the property (lead status, fire safety, habitability, etc). 

One of the concerns you have is that tenants will run window A/C units, hair blowers, and use six outlet extensions any of which will overload old circuits and present a fire hazard. 

I’m asking because I’ve normally flipped but I’ve got an on market deal that’s listed for $120k and I’ve got it at $85k but the margins are a hair too tight for me so I might pass it off to another flipper that takes tighter margins than me.

To the extent you have concerns with the underlying lease agreements provided by the owner, I'd also recommend getting the tenants to sign estoppel statements affirming the lease terms (though I recognize that is more typical of commercial 5+ units loans).

This will basically create a lot more enforcement bureaucrats to split hairs and not return your calls.

That however takes having sufficient ready cash on hand, but most of all a rock steady emotional constitution when the rest of the world is running down the street naked with their hair on fire screaming that the world is coming to an end (so run for your life and sell everything that you own).

I have a WIDE range of Tenants: hair salons, attorney, tae kwon do studio, kitchen designer, dry cleaner, therapist, real estate offices, even a professional hypnotist (!)

The defect may or may not appear as an exception with affirmative insurance provided. 

The gain affirms an accelerating employment trend after a recent stall and could be the start of a prolonged stretch of strong job creation.

This also gives you the flexibility to get in on some deals with a little hair on them.