It would be a shame to pay $219,000 for a rental and then have the neighbors have you shut down for a zoning infraction or violating a law against rooming houses (renting to unrelated adults).Mike

The initial inspection revealed three minor infractions - a couple that were not code violations when the house was built but are now and have to be remedied.  

HOA agreement - if your property is part of an HOA, part of your lease - so they notify you of if notified by HOA of infractions, that they are responsible for any infractions on their part, how long they have to correct those infractions. - make yourself run by lawyer 7.

one could make a case against the E and O insurance for sure.. but I am not in the get an attorney camp for minor deal infractions and for me this is minor.. but for others it could be the end of the world.. 

The same infraction by an institution may not have the same impact on the public as there is with an individual dealing out of compliance.

I'll admit, I don't know the process in your state but you need to start with a lease infraction letter.

In Florida we are governed by FREC and believe me: they don't take infractions lightly.

I have never been arrested and I am sure most cops in most countries have enough common sense not to throw you in jail for a minor infraction like that.

First give this tenant lease violation regarding high traffic to unit.Next put all tenants on a Crime Free / Drug Free Addendum send it out so they can sign and return with August rent.Put tow away notice in your parking lot , unathourized cars towed.. so get update for all your tenants of current cars and get a sticker or tag for them so they have their cars properly ID so they won't get towed.Document any and all infractions, and consult with your local safe officer from your police department about suspected drug / prostitution / who knows activity by this tenant. 

If you have that you should be in good shape -- because you'll also have written proof of her infraction against the bank, so she won't want you showing that to anyone in a later dispute ;)Newbie investors are often posting questions here on "do I REALLY have to live in my property for the prescribed time after getting an owner-occupied loan?"