To @Mike Dymski point about density bonus for low income they tried that with new builds and that caused a rush of permits to go in before the law was past and very few projects after the law. 

The naca program will permit single home Duplex , triplex , four plex  so you can live with your wife in one town house and rent the rest 

Any violations, open permits, etc.?

Quote from @Kar Sun: It appears the law requires you to allow them to attend, inspect together, and mutually agree to a list of damages: https://codes.findlaw.com/tn/title-66-property/tn-code-sect-...Print that off and follow it.Make it clear to her that she is not permitted to bring guests.

Quote from @Kevin Akers: If you have everything else in place (financing, permits, etc) and have underwritten the deal where the numbers make sense you can work on raising the 50K from private investors. 

Have you checked the local regulations if STR are permitted in that market and what the process is?

If your lease has that clause (and assuming your local laws permit), consider notifying your PM of you intent to escrow your rent payments until the situation has been corrected.

Are you completing these renovations with all appropriate permits and approvals?

The economics do not allow for a property renovation, properly permitted and all deferred maintenance issues addressed.  

I did have one electrician come and quote it out for about 12k but that didn't include the permits or any costs related to ComEd.