NSPIRE inspections will more accurately reflect the true physical conditions of properties and ensure that property owners adopt sound maintenance practices to eliminate health and safety hazards that may pose a threat to residents.

For the most part its just health and safety items, which are items we should have remedied anyways.As someone else mentioned, biggest thing to avoid is having the house tagged as vacant which the city will do if it sits empty for too long (handful of months, grass not cut, etc).

It was also difficult to assess the heating situation after repairs since tenant refused to provide key to access unit for repairs and/emergencies, citing “privacy and safety” concerns.

Quote from @Joe Yobaccio: @Chris Seveney I am trying a simpler version of a loan partial, but want to keep my name on the note and Colllaterlize it for safety of a lender and would like some feedback on the terms. 

The brick construction is a plus for durability, but check for any signs of foundation issues, especially if the property has settled over the years.Be sure to budget for updates to key systems—plumbing and electrical upgrades can be pricey but crucial for tenant safety and modern functionality.

If you are 75% complete rehab you are very close to ordering furniture IMO.3 - Look for safety hazards - i.e. uneven steps etc.If your time in town is limited I would focus on these 3 areas.  

Note local rules could be more extreme.  

My concern is whether the city could deny permits for these modifications, such as removing walls or converting a garage, or if they are mainly just concerned with safety and habitability.

If it sounds too good to be true, then make sure that you take the necessary steps to ensure your own safety.

The first thing I would do is call your local code enforcement office/building department.