You also might consider trying to simplify the interconnecting issues as much as possible for the lender to feel more comfortable when underwriting this loan.  

We have moved to hardwired-interconnected with battery backup (in older buildings we use the ones that interconnect wirelessly if we cannot easily pull a 14/3 between the detectors).We also make it very clear in our lease that disabling or impairing the functionality of any fire/gas detection or suppression equipment is a minimum $200.00 fine and cause for termination of the tenancy.

I have since legalized the basement suite by adding interconnected smoke alarms, sprinklers in the mechanical room and applying for development and building permits.Location: Huntington Hills, CalgaryRent: Main Floor $1325 Basement Suite: $950 Garage: $300 Total: $2575Net cash flow: $460 What made you interested in investing in this type of deal?

I added sprinklers in the mechanical room, wirelessly interconnected smoke/co alarm (with hard wired power connections) in the basement bedroom, mechanical room, living room, staircase and 1 upstairs, development permit with the City of Calgary because the lot was zoned RC-1, building, plumbing and electrical permit for the renos.

Replaced the furnace for a high efficiency one, ran CAT6 networking to all rooms, enlarged and replaced 4 of the basement windows, replaced the suspended ceiling for drywall, installed 11 (yes 11) interconnected smoke alarms and sprinkler in mechanical rooms, repainted basement walls, replaced one of the rooms flooring, added gravel to the 3 parking stalls (currently was dirt).

There are more than one tax codes that are interconnected here and that is why you are confused.

Only OP knows his family dynamic and if they are family that can handle financial interconnections or not.

Things are very interconnected in today's world for better or worse. 

You well know all credit cycles end and this one has been supported by the fed since 09.A giant deleveraging event can cause all sorts of havoc to our super complex interconnected global financial system, hence the fed's panic mode right now! 

I know that banks will not lend if the property is not "habitable" (e.g. electrical, plumbing, etc.) but will they not lend if there are certain items on the CO report that have not been fixed during a refinance (e.g. window needs to be replaced, interconnected smoke detectors, fire code items, etc.)?