If the condition is just too bad for this, and rules & regulations prevent this, consider #2.2) Seller Finance with a reasonable down payment and carry the note for the difference. 

How do we structure the deal while be compliant with SEC regulations? 

You will most likely need to give proper notice to non renew the lease and if she does not leave evict.Learn your state landlord tenant regulations then come back if necessary for clarification.

The state also posts public regulations.

I think Chile has very good opportunities, prices are not so high as in the US, construction is very regulated and the economy is pretty stable.

I haven’t heard about how CMHC rules intertwine with the pot regulation..... another item to our due diligence todo list.

remember this is a very legal business and he of all people would know all the ins and outs and rules and regulations and hopefully he was not vetting you out.

Research the local rules and regulations.  

Of course, both if those things are highly regulated.

First you must know and understand all your state landlord/tenant regulations.