If my assumptions are correct - documented 4point issues  (electrical, HVAC, roofing, plumbing)  will need to be remediated in order to close. 

Assuming they are professional and skilled in the craft - alot of the issues you have faced, they will remediate and mitigate moving forward.

I will gladly assign you some remedial tasks associated with my projects and for your efforts and generosity I will assign you Co-GP title and send you out into the world to misrepresent your capabilities and track record to raise capital from others.

Clean water, air, peace and sunshine are nature's remedies and in over-abundance on the Oregon Coast. 

I involved insurance, remediation, restoration and they all did their part and finished in 2 weeks.

Spend what’s needed to upgrade with reliable mechanical systems, roof that doesn’t leak, remediate all mold; interior design modernized; in other words a place that will attract a higher income no hassle tenant.  

What was the cost of remedying the permitting issue should you have chosen to do so?

Since the remedy would be only a court order to withdraw the warranty deed from county clerk filing records, the borrower would have to pay counsel out of pocket in what could be a long, drawn out case.  

There is a remedy for that but it is not cheap. 

It had to be remediated within a tight time window, and then reinspected.