if the paint is in disrepair, you probably should expect that the city will give you a hard time and require that it be remedied before they renew your CofO.  

This means if the tenant qualifies, you must repair/remedy anything they deem non-compliant.One major difference with section 8 is that the annual inspections is for the unit AND all common areas AND the basement. 

If so, it needs remediation.

He or she will need to perform as the buyer would have been required to perform under the agreement.If the assignee doesn’t fulfill his or her duties, then the seller can argue that the sales contract has been breached (thereby allowing the seller to retain the buyers deposits and seek any other remedies set forth in the contract).As long as the seller is ready, willing and able to provide the deed to the original buyer, the seller should win this argument.What Are the Assignee’s Rights?

Unfortunately you arent allowed to choose your appraiser but the appraisal managemt company that lenders use to choose an appraiser *should* do their due dilligence to find a competent appraiser familiar with the ara and review their work for qaulity. if your appraisal does not come back the way you thought it would, there are remediation options such as requesting a reconsideration of value.

But he is worried the entire house in infested and we are going to get trapped into 30k in remediation or something.

The contractor tried to file a claim on the painters insurance but informed me the insurance company will not pay anything or help remedy the issue.

I just received a letter with a list of demands that may take some time to remedy. 

I have never replaced an asbestos based roof or remediated An entire property of lead-based paint, but I wanted to add that into my rehab budget.

Please respond as soon as possible to remediate this.