I would be careful how you "disclose the situation" but would find a way to disclose the situation to new tenants (maybe provide them a link to the sex offender registry and tell them it is important that they verify the area is safe). 

I had my contractor out to verify all areas are sealed of.   

Either way, run your numbers again and verify that you're actually putting your money to work in the best way.

@Jingru Sui have you verified her income?

if it’s multi family and earlier than 1978, they are probably wanting to verify mold, lead and asbestos.

The pendulum is in the exact opposite phase right now, for everything that didn't need to be verified at all in 2006, now it needs to be verified 3 different ways (80% of the paperwork required you actually didn't even see or provide because it was on the back end, a typical printed loan file is currently about 4 inches thick, compliance costs to originate a FNMA mortgage are about $4000 to $8000 depending on who you ask).

Seems fair to me for the most part. 5 years on the landlord reference might be hard to verify in some cases.

Closing attorney needs to get HUD from bank, verify numbers, get/prorate any tax/utility bills, get final payoff numbers etc etcSo anything under 2 weeks is aggressive.

How can I verify that the existing ADU is permitted without showing my hand? 

Does anyone usually verify that the general contractor they are hiring are licensed and insured?