Stay patient and persistent—it may take time to find the right property.

As a forwarning... be patient with the USPS.

NSPIRE inspections will more accurately reflect the true physical conditions of properties and ensure that property owners adopt sound maintenance practices to eliminate health and safety hazards that may pose a threat to residents.

You do not want to go cheap on this, especially when it's for life safety. 

I personally could give a rip about the buyers safety if they dont know any better and get wiped out so what.. but Sellers thats a whole different matter.. a sub 2 gone bad can destroy them financially emotionally physically break up marriages etc etc.

My concern is whether the city could deny permits for these modifications, such as removing walls or converting a garage, or if they are mainly just concerned with safety and habitability.

This is a great place to invest for safety and appreciation.

The brick construction is a plus for durability, but check for any signs of foundation issues, especially if the property has settled over the years.Be sure to budget for updates to key systems—plumbing and electrical upgrades can be pricey but crucial for tenant safety and modern functionality.

But the facility is obsolete so that no self pay patient or insured patient would live there.  

I typically build in an inspection contingency into my offers (yes this reduces my competitiveness of my offers, but its also a safety net to protect my bottom line).