@Taylor ChiuIn order for a bank to issue a loan against collateral (a house) the collateral must be habitable.  

I just know they are vital for success. 

@Arlen ChouI fully intend to pull whatever permits are necessary, as intend to sale the place one day and that bathroom will be vital to the resale, as it's a 2/1 as it stands.

What is the best way to structure the deal so the seller has to take responsibility for remediation and most of the cost to get it back to a basic habitable property?  

Other than that, I tell tenants to not expect the basement to be any better than a garage when it comes to habitability.  

Make a habit of resolving problems as they pop up.  

Contractually it's Problematic.Best practice: "Buyer vesting to be determine in escrow"Who's still teaching these bad habits?

I also believe they have potential for future growth as they both where once predominantly owner occupied.Its is vital to have a unique property manager to cater for the these lower class investment in order for the numbers to work.Without the right PM it is very difficult to succeed.Thanks and have a great day.

They do advocate putting a lot of the maintenance on the tenant buyer, which doesn't work if you have habitability standards in your area.

Develop good habits and structure for you and you'd team.