This actually happened to me with a window that was literally two inches short of code.

DOM maybe inching up but prices definitely don't seem to be dropping.

You might mortise out 5 inches or you might have to mortise out 10 inches.

Thanks in advance for any input.Hi Chad, I took another look at your floor plan and some areas seem a little cramped.It might not be apparent on the floor plan unless you look for it.So to see what it would look like with more people room, I opened things up with about 36 inches walking space instead of 24 inches, pushed the island out a foot and (which may save money and time) simplified the wall layout. 32 inch doors at a minimum, etc..I have no experience in short term rentals, but in long term people tend to notice the kitchen first.I also added a wet bar/wine cabinet to match the kitchen cabinets, because many of the medical personnel I've known over the years tend to enjoy a bit of the hard stuff after work.

I sent them a stack of papers 6 inches thick and I'm not sure they even went through it all for $5000.

I doubt you can turn a centuries old church into a desirable multi-family.The front doors in the one's I've seen are 3 inches thick and must weigh 800 lbs each, with huge heavy hardware.The insides are cavernous, and they have enormous air powered antique organs inside.And the bells might require special insurance policy until you remove them.They also tend to have very steep slate roofs with pointy parts holding huge crosses on  top.Not all but some are like this.Special purpose buildings, probably better to be used as another denomination church.It seems like you could cut it up into rental units, but the renter desirability would probably not be there for most of them.Just my 2 cents.Drone flyover of a Detroit church: https://www.youtube.com/watch?

Found a great deal but I did notice a crack in one of the walls probably 20-30 inches long and a spot where it looks like there may have been a leak at some point.

Even if it is off by 1 inch, we can correct it for the benefit of the developer.Have you looked into that solution?

If the cracks are bigger than 1/8 of an inch, then you may want to have a professional look at it and provide suggestions. 

In some locations it is 4-6 inches off the property line but it varies.