Sure markets shift and modifications to the system may be necessary at some point but a proven system can take alot of the fear & risk out of it.  

It is a Federal Crime to do any modifications prior to closingSince HUD does not provide FHA appraisals any longer even FHA loans are difficult .  

I've since made minor modifications to fit my situation. 

Is one required upon sale and transfer of property or is it if i were to make modifications to the property and needed to pull a permit?  

In my area it requires a Conditional Use Permit which is subject to a public hearing and also the local Building Dept gets into the act as well and can require the hotel be mofified for its' new use which can kill the deal if the modifications are too expensive.

I know there might be some modifications to be made… but it would be great to have one to share.

Make sure every bedroom has sufficient square feet, closets and fire egress offering two escape routes (window outside and door).As far as appraisal, odds are good that the modifications will reduce value.

Probably the way to structure it would be to document each "change" in writing, and stipulate in the lease any modification without my written approval would result in the violation of the lease.

Some examples:- Lease modification.

We have to do a little work here with the surveyor, city, utility modifications, adding driveways , flipping garage doors but if I can do this, it will really optimize the value of the investment but I will have have to have the stars align so will see how it goes!