They will take the permit fee and send an inspector that will provide some assurance that the work was performed correctly.

It sounds like the reverse mortgage company is offering a path for you to buy it - which is more than they have to do.  

I personally think you can successfully market both your property management (PM) and buy/sell real estate services under one brand if you position them correctly.

Hey @Raghavendra Pillappa, late to the party here but everyone said it best.I wouldn't move forward on this until you find out all the details on if the septic can be expanded and if things were done correctly to add the bedrooms.

C class in general is in for a major correction in my opinion (a lot of which has happened already but I think there is more to come) and this will be another nail in that coffin.But as with all chaos, opportunity breeds. 

It took a few months to correct it but they finally did.

@Dan AudinoFor path #1, is your eventual goal to rent out the property?

As others correctly noted, as a landlord you must look at the big picture and if this happens to be a good tenant who has occupied the unit for a while, has a history of timely payments and has expressed interest in remaining at the property the value in an extension (assuming that is advantageous to you as the landlord) should be placed above your desire to collect rent in a certain method if this particularly tenant has strong desires to make their payments in a different manner....especially if the lease they signed allowed a different payment method.

@Roi Azoulay I think you are absolutely correct in this.

So, if a loss occurs while the property is being repaired or renovated, coverage would apply, correct?