There's a good chance the issue(s) you face has already been discussed and answered.Ask questions in the appropriate forum.

This specific tenant is in a program so the longer they take to send me the document, the chances of issues coming about is higher.

Investment Info:Single-family residence buy & hold investment.

Investment Info:Single-family residence buy & hold investment.

Rather than just spending the money on a rate buy down. 

Moving and buying your first piece of real estate is a lot in the next year!

You could force the seller to bring it up to code before the sale is complete as one of the contingencies of buying it, let them deal with it.

My friend has 3 rental properties there alone and when I asked him about buying more he said if he did buy it would be there.

Sub2 is a risky strategy for a long term buy and hold as the longer the deal structure stays in place, the higher the chance that issues will arise (like issues with the loan servicer, insurance, seller filing for bankruptcy, seller dying, seller realizing their DTI ratio and ability to buy their next property is negatively effected and becoming upset about it like in your case, due on sale clause being called, etc.).

But…There’s ZERO chance I would rent by the room for $600/months more.